The bitcoin market had a strong week with prices spiking from $426 to peak around $464 mid-week before closing in the high-$440s. This week, the market will look to consolidate above the new support level of $440.
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Source: tradeblock.com
Bitcoin Price Recap
Last week’s 9% mid-week price spike was fueled by heavy activity overnight Wednesday into Thursday. The bitcoin price was unable to break a key resistance level at $465 and closed the week up a modest 3.5%.
The price increase doesn’t come as a surprise. Traders will place most foundational price bets for 2016 in January in an effort to put their 6-12 month viewpoints and strategies into play.
Dissipating exchange volumes continue to be a concern for traders. Volumes have moved lower for the better part of the last six months while prices have appreciated over this same time period. This market action raises the question of whether the increase in bitcoin price is due to a a lack of supply in the market coupled with steady buy-side demand.
Bitcoin by the Numbers
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Bitcoin Trading Week Ahead
Last week’s resistance level of $440 was shattered by Thursday and prices have held above this level creating a new short-term support. Traders will keep a close eye on whether the market can sustain this new level and make another run at $465
This week, bitcoin traders can find support at $440 and resistance at $465.
Best Bits from Last Week
- Bitcoin Magazine: BitFury to Mass Produce New 16nm Chip and Sell to Public
- TechCrunch: Ledger Wallet Is One Of The Most Secure Bitcoin Wallets You Can Get
- Coindesk: 2015 Was Do or Die for Bitcoin Miners But Promise Lies Ahead
- Nasdaq: This Time Bitcoin's Price Increase is Both Logical and Sustainable
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*All data and references are current as of 9:00AM EST on 1/11/2016.
