Bitcoin rallied slightly during the trading session on Wednesday against the US dollar but continues to look very vulnerable to pressure. One major concern of course is the lack of volume, and as long as that’s an issue, rallies can’t necessarily be trusted. At this point, I would need to see the market either pick up a lot of volume on a green candle or break above the $13,000 level to start buying. More than likely, we will see a short-term pullback.
If there’s one bright spot, it could be the fact that Bitcoin has bounced from the 61.8% Fibonacci retracement level in the BTC/JPY pair. This pair is crucial, because 40% of crypto currency trading is done in the region. However, I’m not willing to buy this market until we break above the ¥1.4 million level, which is still a bit higher. That being said, this is a market to pay attention to as it could lead the way and tell us when it’s safe to start buying again.
Thanks for watching, I’ll be back tomorrow.