BTC/USD
Bitcoin markets drifted a bit lower during the trading session on Monday, reaching down towards the $9200 level. I think that the significant support underneath that the $9000 level is probably where we target, but that should be an area where we could bounce from. Ultimately, I believe that the $9000 level will be an area that will attract a significant amount of volume, and that should turn things around for most traders. However, if we were to break down below $8800, I think that the market drops rather significantly. I recognize the $10,000 level above will continue to be resistance, and it may take several attempts to break above there. I think that’s what we are seeing.
BTC/JPY
Bitcoin fell against the Japanese yen on Monday, testing the ¥1 million level for support. This is an area that should be psychologically important, but I think there’s plenty of support extending down to the ¥980,000 level. I think that some type of bounce could be a buying opportunity, as I think that Bitcoin in general is trying to break out above a significant resistance. Ultimately, if we break down below the ¥950,000 level, then the market probably goes much lower. I believe that the markets will continue to be choppy in general, but I cannot help but notice that when we fall, it tends to be much further than we rise. I think this is indicative of a market that is trying to build up momentum. Once we get that momentum, and break above the ¥1.1 million level, the market should go much higher.