The Bitcoin markets exploded to the upside during the trading session on Thursday, gaining significantly in a very short amount of time. We reached major areas, and it looks likely that the markets will continue to show strength to the upside, but we will probably have a few pullbacks.
Bitcoin markets went sideways initially during the trading session on Thursday, but then exploded to the upside as we reached as high as $8000. We pulled back slightly from there, and it is an area that is very choppy in general and noisy as well. I think that pullbacks continue to be likely, but those should offer value for traders going forward. Ultimately, the markets look to have formed a bit of a base, and I think that there has been a significant change in attitude during the day. That isn’t to say that we are in the clear quite yet, but certainly it looks as if short-term buying opportunities could present themselves on these pullbacks.
And what I consider as one of the most important crypto currency markets, Bitcoin has exploded to the upside against the Japanese yen. The ¥850,000 level is the fulcrum of major noise, and I think that it should continue to be resistance. However, I do think that we managed to break above their based upon the impulsive move that we’ve had, with pullbacks offering a bit of value. This will also be a situation where it will take a certain amount of wherewithal to hang onto these positions. It looks as if the ¥700,000 level is going to try to offer a bit of a base, so right now I think that you could get a short-term opportunity to go long on these dips. I still look at the ¥1.1 million level above as a major resistance barrier that would need to be cleared to change the trend.
Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.