BTC/USD

Bitcoin traders rallied a bit during the trading session on Monday, and what probably would have been a reasonably quiet session, at least in the United States. Ultimately, the market looks likely to try to grind higher, but I see a lot of noise between here and the $12000 level, so I think that even if we are bullish, it is going to be somewhat muted. I think that the market will probably settle down in this area, as the market has gotten a little bit ahead of itself, perhaps in reaction to short covering or perhaps a lot of people looking to pick up longer-term value. I believe that the market will probably continue to be very noisy, but once we break above the $12,000 level, we enter the next phase of climbing higher. I believe that the market will make an impulsive decision soon, and as soon as we get it, following that is probably the best way to go long-term. I currently see support at the $10,000 level.

BTC/JPY

The Bitcoin market rallied during the day against the Japanese yen as well, testing the ¥1.2 million level. I think that the market has a lot of noise about it, so it seems very difficult to get above here in the short term. I think that a pullback probably helps, as we may have to build up the necessary momentum to break out. However, if we break down below the ¥1 million level, that would be a very negative sign in the market would continue to drive towards the ¥800,000 level. If we do get a breakout, especially above the ¥1.3 million level, the market should then go to the ¥1.5 million level next. I anticipate that there will be a lot of volatility, and right now I think it’s more likely to be a short-term range-bound trader type of event.