BTC/USD
Bitcoin rallied during the trading session on Wednesday, reaching towards the $9200 level before finding a bit of resistance. The top of the consolidation area that we are currently in extends to the $9500 level, so I think that’s probably where we end up, although I do recognize that there will be several pullbacks between now and then. I believe that the $8800 level is a bit of a short-term “floor” in the market, and that we will eventually find reasons to go higher. If we were to break down below that level though, that could be very negative, sending this market down to the $8200 level rather quickly.
BTC/JPY
Bitcoin continues to dance around the ¥1 million Mark, which is the center focus of the larger consolidation area. Because of this, I think that we need to see a fresh, new high to be confident in buying, but at that point I suspect the market will probably go looking for the ¥1.25 million level. If we pull back from here, it’s not until we break down below ¥950,000 that I would be a seller. If that happens, I believe that the market will probably go looking towards the ¥850,000 level underneath, and then perhaps the ¥700,000 level after that. In general, I am bullish of this market, but I also recognize that we are dead smack in the middle of the overall consolidation. This leads for a “50-50” trade at best.