Bitcoin rallies during the week, but gives back much of the gains

Bitcoin rallied significantly during the week but found enough resistance near the $10,000 level to turn things over and form a bit of a shooting star. While we have been bullish over the last couple of weeks, the preceding hammer suggests that perhaps we may have some sideways action. · FX Empire

Christopher Lewis

Updated Fri, Apr 27, 2018, 11:33 PM

BTC/USD

Bitcoin rallied against the US dollar during the week, reaching towards the $10,000 level before finding sellers yet again. We formed a bit of a shooting star, which is a very negative sign, and I think that if we break down below the bottom of the shooting star, we could go down to the $8000 level underneath which is the bottom of the hammer the proceeds that candle. In other words, think we are going to see a bit of sideways action. However, if we were to break above the $10,000 level, the market probably goes to the $12,000 level next. When looking at the longer-term chart though, it does look like a rollover would not be out of the question.

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BTC/JPY

Bitcoin rallied during the week, breaking above the ¥1 million level but rolling over to form a shooting star is what ended up happening. The preceding hammer of course is supportive, and at this point I think that we may roll over and try to look towards the ¥1 million level again for support. If we broke above the top of the shooting star, the market probably then goes to the ¥1.25 million level after that, which is even more resistive. In other words, I think that although we may have a little bit of an upward move from here, I suspect that the longevity that move might be somewhat limited in its scope and duration.