The Bitcoin markets fell during Wednesday trading session, reaching to lower levels as profit-taking continue to. It looks likely that the market is going to struggle in this general vicinity, as it is the first serious test of resistance. I believe that if we break down below the $10,000 level, the market could drop as low as $8000 rather quickly. At this point, it is a bit early to talk about the market being extraordinarily weak, but I think that the overall attitude of the market is going to be more of a grind sideways than anything else. If we can break above the $12,000 level, then I think the market continues to go higher. Otherwise, I think we may drift a little bit lower to establish enough momentum to finally break out to the upside.
Bitcoin also fell against the Japanese yen during the trading session, as the ¥1.2 million level has offered resistance, and it looks like we may have to pull back a little bit to build up the necessary momentum to go higher. That’s typical, especially after a massive selloff, because it’s very unlikely that we would bounce straight up in the air. I think that the market will probably pull back to about ¥1 million where we can find buyers. If we were to break above the ¥1.3 million level, then I think it would show enough momentum to continue to go higher. Volume would help to, which has been average, so at least it’s not poor, but a surge in volume certainly would help the buyers.