Bitcoin traders have been navigating choppy waters thus far in 2016. Over the past week, the market hit a high of $423.50 and low of $374.50, presenting traders with a nice opportunity to lock in fresh profits in the short-term. Traders should look for even more volatility in the week ahead.
Bitcoin Price Recap
Last week’s volatile price action came with a welcomed increase in exchange volumes, up nearly 5% week-over-week. With regards to the market volatility, here are some notable events that may have acted as drivers:
- Mike Hearn, former bitcoin core developer, announced his exit from the bitcoin ecosystem and sold his bitcoin holdings.
- Kraken acquired Coinsetter and CAVirtex.
- North American Bitcoin Conference kicked off in Miami, marking the first big bitcoin conference of 2016.
Bitcoin by the Numbers
Bitcoin Trading Week Ahead
Over the first few weeks of the new year, there has been little in the way of news or data to convince traders of where the market may be heading. Blockchain technology continues to dominate headlines while Bitcoin flies under the radar. Regardless, traders will continue to hunt for yield in bitcoin as the macro picture across nearly every asset class is painted with gloom.
Should the market trend higher, we could experience a steady run up to $470 off of consistent weekly gains. This run could prove to be similar to what occurred in December.
This week, bitcoin traders can find support at $385 and resistance at $405.
Best Bits from Last Week
- Bitcoin Magazine: PricewaterhouseCoopers Launches Bitcoin and Blockchain Technology Team
- TechCrunch: Bitcoin Exchange Kraken Acquires Coinsetter To Expand To The U.S.
- Coindesk: Blockstream CEO: Bitcoin Creating 'Toxic' Environment for Developers
- IB Times: Craig Wright Is Not Bitcoin Creator Satoshi Nakamoto, According To New Text Analysis
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*All data and references are current as of 9:00AM EST on 1/26/2016.