Bitcoin markets rallied a bit during Wednesday, showing signs of life again but remains within a consolidation range. Because of this, I think that we could get a short-term opportunity at best, but it will take some type of fundamental reason for Bitcoin to continue rallying.
Bitcoin markets rallied a bit during the trading session on Wednesday, reaching towards the $7000 level before pulling back. We are still in the middle of the consolidation area, so it’s likely that we will continue with the choppy action. Currently, I believe the $7200 level is significant resistance, and the $6500 level under there is significant support. As we continue to go back and forth, it’s likely that we will see this market make a lot of noise, so the short-term trader may be interested in trading a range bound system with those levels as parameters. Regardless, we are in the middle of that area so patience would be needed to get the correct set up.
Bitcoin markets rallied a bit against the Japanese yen as well, but just as against the US dollar, we are in the middle of the overall consolidation. The ¥700,000 level underneath is support while the ¥800,000 level above is massive resistance. I believe that there will be plenty of back-and-forth trading, but right now you can see how small the candle czar, meaning that there is a lot of interest in this market currently. That doesn’t mean you can’t trade it, just that you need to pay attention to the upper and lower levels to place your position. I would also use a relatively small position, because there’s no need to tie up a bunch of capital in a market that isn’t moving. Regardless, there’s a nice range that you can play.