Bitcoin markets rallied a bit during the trading session on Friday, gaining over 5% against the US dollar. This is a good sign, and it looks as if we are going to go looking to test the $10,000 level. That’s an area that could be resistance, but I think that the resistance area extends to the $12,000 level. Because of this, if we can break above the $10,000 level, the $12,000 level is then going to be my target. Alternately, we may run into a little bit of resistance in that area, but that short-term pullback will more than likely end up being a buying opportunity as we try to build up enough momentum to break out to the upside. Remember, these large, round, psychologically significant numbers do tend to attract a lot of attention.
Bitcoin rallied against the Japanese yen as well, breaking above the ¥1 million level. The market has cleared that rather handily, and I think now we are almost ready to break above the ¥1.1 million level, which will then free the market to go to the ¥1.25 million level. Although we could see some resistance in this area, I think that a pullback will more than likely end up being a nice buying opportunity as it will simply be the market trying to build up momentum to go higher. I think short-term pullbacks will be looked at as potential value, but I don’t think jumping in with both feet is the smart thing to do. I think simply adding little bits and pieces along the way and building up a larger position is probably the best way to go. I believe that the ¥900,000 level underneath could be support, so I would look for value hunters to come back into the marketplace somewhere near that level.