Bitcoin Price Outlook: Week of May 16, 2016

Bitcoin Price Outlook May 16 2016

The price of bitcoin was fairly flat last week, down less than a percent from the May 9th close.  Bitcoin price dropped 3% on May 10th, from over $460 to $447, before rebounding and consolidating in a tight range the rest of the week.

There continues to be major resistance overhead and this was enforced by the strong rejection the price suffered after clearing $460 again early last week.

 

Weekly Bitcoin Price Chart

Source: tradeblock.com



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Bitcoin Price Outlook for the Week Ahead

The bitcoin price is currently testing support at $453. The RSI has gone bearish and the MACD has had a bearish crossover. If the price goes below this support level this week, expect a test at $447 and then potentially $440. 

For a short-term breakout to occur, the price would need to rebound and first break through resistance at $463 and $467. This would put the price in an area to begin challenging that big resistance area. Volume will need ramp up and follow the price up for it to have the best chance to legitimately test the upside.



Elizabeth Hamilton is the Director of Trading at itBit. She manages itBit's OTC agency trading desk, working closely with OTC traders through settlement. Elizabeth has been trading and performing market analysis in the bitcoin space since 2013. Prior to joining itBit, she worked at Noble Markets helping to design and build the firm's proprietary crypto-asset marketplace. She also performed primary research on bitcoin and emerging digital currency markets while at ARK Investment Management. Elizabeth holds a bachelor's degree in Physics from Swarthmore College.

 

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*All data and references are current as of 4:00PM EST on 5/16/2016.

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