BTC/USD
Bitcoin markets drifted a little bit lower during the day on Monday, as we continue to see the volume drop in this market. It looks as if the 50% Fibonacci retracement level continues to offer support, which is just above the $10,000 level. The $10,000 level of course is psychologically important, and an area where we have seen buyers come back into this market. However, until we see volume pick up with a move higher, I’m not convinced. In fact, I suspect that we could see the floor drop out of the market if we close on a daily candle stick below the $10,000 handle. In the meantime, it looks like we are likely to see a lot of sideways trading, and essentially scalping back and forth. If we get strong volume and break above the $13,000 handle, then I feel like the market can start looking towards the $15,000 level again. What concerns me the most is that even on days where the US dollar has fallen in the Forex markets, Bitcoin can’t gain.
BTC/JPY
Bitcoin markets drifted a little bit lower against the Japanese yen as well, and on light volume yet again. When you look at the daily chart, the strongest candles as far as volume is concerned tend to be red. Below, I see the ¥1 million level as the “floor” in this market, and if we break down below there, I think that this pair has much farther to go, with the initial target be in the ¥800,000 level. Alternately, if we break above the ¥1.3 million level, I would be a buyer but only if we have volume attached to that move. The ¥1.5 million level would be the target at that point, the currently it doesn’t look like were ready to go anywhere.
