Bitcoin markets pulled back a bit during the week but found enough support at the $10,000 level to form a bit of a hammer. However, we continue to struggle to find upward momentum.
Bitcoin markets pulled back during the week, but continue to find support near the $10,000 level, an area that of course has a certain amount of psychological importance to it. There is the 50% Fibonacci retracement level there that could offer a bit of noise as well, but what I’m concerned about is that we don’t have a lot of volume at this point. I think the market is trying to decide which direction to go, and I also believe the $10,000 is a psychologically important level. However, I believe that it is much more important to pay attention to Bitcoin priced and the Japanese yen than the US dollar, as there is 40% of the worlds volume found in that country.
Bitcoin markets broke down during the week, reaching towards the 61.8% Fibonacci retracement level. The ¥1.1 million level has been supportive, and I think that it is the beginning of his own that extends down to the ¥1 million level. If we break down below the ¥1 million level, the market should break down significantly at that point, with the next support level being the ¥800,000 level. Alternately, if we can break above the ¥1.3 million level, we could see the market tried to overtake the 50% Fibonacci retracement level, and then the 38.2% Fibonacci retracement level. I believe that the market will eventually have to decide, and I think that this market will lead where the rest of the crypto currency markets go, the BTC/USD pair included. No matter what you trade, you should be paying attention to this market.
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.