BTC/USD

Bitcoin markets pulled back slightly during the trading session on Tuesday but found enough buyers underneath to turn around and form a hammer. It now looks as if the market is going to make it go at higher pricing, but I believe that the $10,000 level will continue to be very resistive. I suspect at this point we may get a short-term rally, but that’s about all it will be – a short-term rally. If we were to break above the $10,000 level, that could open the door to the $12,000 level. Otherwise, we could see sellers jump into $10,000 to turn things around again. If we break down below the bottom of the hammer for the session on Tuesday, then I think the market probably drops towards the $7500 level next. It’s likely that we will continue to see a lot of noise, which is typical for crypto, but in the end, I think the market is still reeling from the shock of losing 70%.

BTC/JPY

Bitcoin initially fell against the Japanese yen during the trading on Tuesday but turned around to form a bit of a hammer. The hammer suggesting that we are ready to rally from here as well, but I think there is massive amounts of support at the ¥1 million level, extending to the ¥1.1 million level. I believe that the market will continue to see significant twists and turns, but if we were to break above that ¥1.1 million level, we could go as high as ¥1.3 million. Otherwise, I believe that we will continue consolidating between ¥800,000 on the bottom, and the ¥1 million on the top. I believe that Bitcoin will continue to struggle, because there is going to be a significant lack of confidence after the breakdown.