Bitcoin markets pulled back a bit during the week initially but found enough support underneath to turn around and show signs of support. In fact, both markets are showing signs of bullish pressure again.
Bitcoin markets initially fell during the week, reaching below the $8000 level but have turned around to form a bit of a hammer. This is a very bullish sign, and I think that we could go looking towards the $9000 level, and then eventually the $10,000 level. However, we have a shooting star from a month ago that could offer a bit of resistance, so although I think that we go higher, it’s going to be a very choppy road to get to $10,000. If we break down below the bottom of the candle for the week, then we probably go back towards the $7400 level again.
The Bitcoin market pulled back against the Japanese yen initially during the week as well but turned around to form a hammer. If we can break above the top of the hammer I think we will then go to the ¥1 million level next. Ultimately, if we can break above there, the market should go to the ¥1.25 million level. That is an area of major resistance. If we can finally break above that level, then the market is more than likely going to go much higher. I believe that the ¥700,000 level offers a bit of a floor, and if we were to turn around a breakdown below that level, that would be extraordinarily negative. It looks to me as if Bitcoin is trying to make a stand here, and perhaps try to build another uptrend. However, I suspect that any rally from here will not be like the one we saw last year, which quite frankly is a good thing.
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.