Bitcoin rallied a bit during the trading session on Wednesday, reaching towards the $9200 level. We have broken above the $9000 level, so that’s a bullish sign but I think it’s only a matter of time before we get a bit of a push back. I see a lot of noise between here and $10,000 above, so if you cannot handle volatility, this will be the place to be. If we pull back from here, I think that the $8500 level could offer support. A breakdown below the $8400 level resumes the downtrend. Alternately, we could go higher, but I think $10,000 above is a major level to deal with. Any signs of exhaustion should be selling opportunities just waiting to happen between here and there, but if we were to break above the $10,000 level, it’s a very bullish sign. I think there is a lot of noise between here and there, so I would be very cautious about going long.
Bitcoin markets also rallied against the Japanese yen, as we are getting close to the ¥1 million level. If we can break above there, we need to deal with resistance going to the ¥1.1 million level, so it’s not until we break above there that I’m comfortable buying. I think we are far too close to resistance to jump in right now, as it could be a good way to be on the wrong side of the trade. If we break down below the ¥100,000 level, that would be very negative. I think that we are essentially at a major decision point, so putting money into this market is probably difficult.