BTC/USD
Bitcoin rallied against the US dollar during trading on Thursday, breaking above the psychologically important $10,000 level. We are now at a very crucial point on this chart, as you can see that the area just above has been support in the past and should now be resistance. I think the next couple of sessions will determine what happens with Bitcoin longer term, so I think that patience will probably be what you need. We could very easily roll over, perhaps reaching down towards $8000 looking for support. Alternately, if we break above the $11,000 level, then I think Bitcoin is ready to get back some of the losses that we had seen recently. I anticipate that the next move would be to the $13,000 level above, perhaps even higher. However, I think that a lot of people are concerned after the recent 70% drop.
BTC/JPY
The Bitcoin markets have broken above the ¥1 million level during the day on Thursday, which of course is a very important level. I think the ¥1.2 million level above is the initial target, and if we can break above there I think that the BTC/JPY pair continues to go much higher. Ultimately, I think that if we roll over from here, it’s likely that we could test the ¥900,000 level. Alternately, if we can break above the ¥1.2 million level, then the next target will be the ¥1.3 million level, and then eventually the ¥1.4 million level. Remember, Japan is 40% of the volume, so this chart should lead where the other Bitcoin related currency pairs go. Expect volatility, but I think we are starting to see signs of the market trying to reestablish the uptrend again. There is no reason to jump in with both feet right away, because if we capture the losses, we are going to at least double from here.
