BTC/USD
Bitcoin markets have attempted to rally during the trading session on Thursday but gave back much of the gains as it looks like we are ready to pull back a bit. This makes sense, the market had gotten ahead of themselves, and I think that pullbacks offer value the people are looking for. After all, it would be a difficult proposition to expect a lot of people to jump in $2000 later. I think this pullback should see plenty of interest somewhere near the $7500 level, but if we were to break down below the $7250 level, the market will probably unwind and fall towards the lows again. While I don’t advocate selling right now, I do think that at the very least we are looking at a pullback. The market has gone parabolic over the last several days, so this of course is normal.
BTC/JPY
Bitcoin rallied slightly against the Japanese yen but gave back a bit of the gains. I think that the market continues to look likely to go higher over the longer-term, perhaps reaching towards ¥1 million, but much like against the US dollar, I think we need to pull back to find value. I think that the ¥800,000 level below is massive support, and I think that the value hunters will come out at that point. I believe that the market will find support underneath though and looking at this pullback as an opportunity is probably the best prism to see the market through. However, if we were to break down below the ¥800,000 level, the market could very well drop to the ¥700,000 level which was the low recently. We are overdone, so cooling off of the market is necessary, especially if we are going to try to form a longer-term move.
