The price of bitcoin closed unchanged week-over-week but not without a flurry of mid-week activity. The price shot down to $366 on Wednesday (hitting our projected short-term support) then bounced up to $390 Thursday before closing the week in the mid-$370 range. Traders are expecting a slow week ahead with lower market activity due to the Chinese New Year holiday.
Bitcoin Price Recap
The sudden mid-week volatility in the bitcoin market came as a surprise to participants who were anticipating subdued trading activity given the approaching Chinese New Year. The quick sell-off from Thursday’s peak at $390 was telling and helped establish a stronger understanding of where support and resistance currently reside.
Bitcoin by the Numbers
Bitcoin Trading Week Ahead
The US markets have been led in large part by movements from Chinese exchanges. The Chinese New Year holiday means slower Asia trading activity and by extension lower volatility in the USD-denominated exchanges throughout much of this week.
This week, bitcoin traders can find short-term support at $365 (which was tested and validated last week) and resistance at $385.
Best Bits from Last Week
- Wired: Why Bitcoin Will Thrive First in the Developing World
- Globes: Israeli Bitcoin Payment Company Simplex Raises $7m
- Finance Magnates: Bitcoin Traders Take Note: Happy Chinese New Year
- WSJ: Bitcoin Startup Blockstream Raises $55 Million in Funding Round
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*All data and references are current as of 9:00AM EST on 2/8/2016.