The bitcoin market continued to move sideways last week with prices bouncing between $236 and $239. This week, traders will be looking for strong buy or sell signals from the market with an eye fixed on exchange volumes to reinforce the validity of the price movements. With a solid support level built at $236, the market will look to break last week’s resistance of $240.
Bitcoin Price Recap
There were limited trading opportunities available to market participants last week as prices at major exchanges continue to tighten during this period of extreme low volatility. This has been particularly detrimental for arbitrage traders.
On a more positive note, questions surrounding the soundness of last week’s surprising 2% jump in early week pricing have been answered. The sudden break in resistance has created a new level of support at $236 and the market has been injected with a new sense of confidence as a result of this revised price floor.
Bitcoin by the Numbers
Bitcoin Trading Week Ahead
Traders should continue to watch volumes this week. Further decline in trading exchange volume could hurt the market’s growing confidence as traders may attribute price moves to weak liquidity. Market movement tied to strong volume figures will help build positive price momentum.
For this week, short-term support can be found at $236, with longer term support at $233. Should resistance break at $240, the next resistance level could be $245, a price level last touched in early-September.
Best Bits from Last Week
- CNBC: Wall Street is Embracing Bitcoin
- Bitcoin Magazine: IBM Developing Blockchain Without Bitcoin for Record-Keeping and Smart Contracts
- Coindesk: Nasdaq Blockchain Chief: Bitcoin's Currency and Ledger are 'Two Innovations'
Bobby Cho is the Director of Trading at itBit and heads our Global OTC Agency Trading Desk. Previously, Bobby was Vice President of Trading at SecondMarket where he helped create the first broker-dealer based institutional bitcoin trading desk. He has extensive experience in both bitcoin and securities trading with clientele ranging from Fortune 500 companies, hedge funds, asset managers and other financial institutions.
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*All data and references are current as of 9:00AM EST on 9/28/2015.