Bitcoin finds support late during the week

Bitcoin struggles early, with a hold above key support levels key to support an afternoon rally, though we will expect investors to be a little cautious as regulators begin to roll out new cryptomarket regulations. · FX Empire

Christopher Lewis

Updated Fri, May 4, 2018, 11:46 PM

BTC/USD

Bitcoin initially fell against the US dollar during the week but found enough support near the $9000 level to turn things around and form a hammer as it shows that we are trying to break above the $10,000 level. If we can break above the $10,000 level next, I think the we could reach towards the $12,000 level above, which is the next major resistance barrier. Alternately, if we break down below the bottom of the hammer for the week, that would be a very negative sign, perhaps sending the market down towards the $8000 level, followed by the $6000 level.

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BTC/JPY

Bitcoin initially fell against the Japanese yen as well but found enough support to turn around and break above the ¥1 million level again. I think that we could go higher, and a break above the top of the candle for the week should send this market looking towards the ¥1.25 million level. That’s the top of the overall consolidation, as the market continues to go back and forth. It looks as if we are going to go looking towards that level, but if we were to break above the 1.25 handle, then I think we could go much higher, perhaps reaching towards the ¥2 million level. Otherwise, if we break down below the bottom of the hammer, then we could go as low as ¥700,000 underneath, as it has been the bottom of the overall consolidation.