BTC/USD

The Bitcoin market fell during the trading session on Wednesday, reaching towards the $10,400 level. The shooting star that formed on Tuesday does show signs of exhaustion, so I think now we are getting very close to a significant level in the form of $10,000. If we can break down below there, the market probably breaks down towards the $9000 level, and then eventually the $8000 level. Ultimately, I believe that the market has gotten a bit ahead of itself, and of course, we are testing the first significant resistance barrier. I believe that we aren’t necessarily looking at some major breakdown, rather a pullback. If we did somehow break down below the $8000 level, that could make things ugly very quickly. At this point, I suspect that a pullback will offer value that you can take advantage of, but you need to be patient.

BTC/JPY

The Bitcoin market fell against the Japanese yen as well, slicing back below the ¥1.2 million level. I believe that the market is currently dealing with a consolidation area between the ¥1 million level on the bottom, and the ¥1.2 million level on the top. Ultimately, I think if we can break above the top of the shooting star from the Tuesday session, the market can go higher, perhaps reaching towards the ¥1.5 million level. In general, I believe that this market is the one that you need to pay attention to the most, as 40% of Bitcoin trading is done in Japan. I believe that we are looking for a pullback at this point, I anticipate that the ¥1 million level should be a bit of a “floor”, and if it isn’t that could be a very negative sign. Pay attention for the next couple of days, I think we could be trying to make a longer-term move in one direction or the other.