Bitcoin has gone back and forth during the trading session on Tuesday, reaching towards the $8600 level. This is an area that has caused a bit of noise recently, and I think that if we can break above the $8800 level, we could go towards the $9200 level. I suspect that the move higher will be a bit noisy, especially once we break above the $9200 level, as there is a lot of noise between here and $10,000 overall. Ultimately, this is a market that should continue to be very choppy and noisy, but I also recognize that we will need to make some type of longer-term decision relatively soon. I believe that until we break above the $10,000 level, you are likely to see sellers step in on rallies.
It does appear the Bitcoin is trying to form a bit of a bottoming pattern against both the US dollar in the Japanese yen, and it will more than likely confirm that in this pair first. This is because 40% of Bitcoin trading is done in Japan, so therefore it is a very important for this pair to do well for Bitcoin to rally overall. Between here and ¥1 million, there should be a significant amount of resistance, and it’s not until we break above ¥1.1 million that I am convinced of the complete break out to the upside, so I think until we do that it’s likely that rallies will fade and offer selling opportunities.