BTC/USD
Bitcoin did almost nothing on Monday, as we continue to hang about the $8800 level. There is a significant amount of noise at the $9000 level on the short-term charts, and I think that the resistance extends to the $10,000 handle. It is because of this that I would anticipate some type a pullback, but I think that $8000 could offer a bit of support. Buying on dips is probably the best way to trade this market if you are longer-term inclined. However, most traders are not, looking to mash buttons as quickly as they can. If that’s the case, Bitcoin is not where you want to be putting your money, as the alt coins are starting to show signs of life again, and they do tend to move a bit quicker. However, if Bitcoin can break above the $10,000 level, it’s likely to continue going higher.
BTC/JPY
The ¥1 million level above is going to offer resistance against the Japanese yen, and the fact that the Japanese yen got hammered during the trading session on Monday and the BTC/JPY pair can’t break above this level suggests to me that we are probably going to see a short-term pullback. However, if we break above the ¥1 million level, and possibly even the ¥1.1 million level, then we are free to go to the ¥1.25 million level otherwise, I suspect that we will go closer to the ¥900,000 level underneath where the buyers could get involved. As you can see on the chart, I have 3 lines that I am paying attention to, and we are essentially a “fair value” for the pair right now. Because of this, you should be looking for value on pullbacks if you’re a longer-term buyer, otherwise short-term sellers will probably find this area of interest.
