BTC/USD
Bitcoin fell initially during training on Monday, reaching as low as $9100 before bouncing. As I record this, we are down just over 1%, which of course is within the range of consolidation that we have been in. I think that the $9000 level is psychologically important, and of course structurally important. I also recognize that the $9500 level above is resistance as it has been tested several times, but we have failed to break above there. If we can break above the $9500 level, then the market is ready to go to the $9700 level, and then perhaps the $10,000 level after that. I recognize the volatility is going to continue to cause a lot of choppiness.
BTC/JPY
Bitcoin fell against the Japanese yen during the trading session on Monday, testing the ¥1 million level for the third day in a row. The market looks likely to continue to find that area very important, as it is a large, round, psychologically significant figure, and of course attract a lot of headlines. Even with that, one thing that I have been paying attention to has been the ¥1,020,000 level, which has been offering short-term resistance. It’s a bit early to say, but it looks as if the buyers are willing to step in at the ¥1 million level, and perhaps they are trying to build up enough momentum to continue the move higher. Even if we break down from here, I anticipate that the ¥970,000 level should be short-term support, therefore I think this is a “buy on the dips” short-term trade.