Bitcoin Price Analysis - Beginning of 2016
As we’ve now well settled into 2016. Made awesome new year’s resolutions. Achieved a lot of them and also probably broke most of them. As the start of the new year always brings new highs or lows when it comes to assets let’s have a little look at what the price of Bitcoin has been up to this year.
The New Year for Bitcoin
Just like all of the previous years that Bitcoin has been active this year also started with a big drop in price. This event as always is due to some incriminating huge news. Probably something about Bitcoin being dead. We know, right? Like every year, Bitcoin was again declared dead and of no use to anyone. This time it was because a former Bitcoin developer Mark Hearn stated in his blog post that Bitcoin was indeed doomed and blockchain was apparently full. So it seemed that the party was over and as this article quickly went viral, confidence was lost and people started selling. Resulting in the price dropping from $435 down to $365.
The panic however was over soon once people started to analyse what he was actually saying and a lot of it did not make that much sense. And by all means he has a right to his personal opinion and he can write about whatever he wants in his blog. Whether his claims were a malicious act to bring the price down or not it’s hard to say. If they were then kudos to him, it worked brilliantly.
But because Bitcoin isn’t dead, not yet at least, the price is climbing steadily again. Currently around $440 it is safe to assume that the next resistance level is $450. Whether the price breaks straight through or takes a little pullback it will become clear soon. Bitcoin is still very volatile and reacts very well to support & resistance levels at round numbers. Looking back there are clear and strong levels every $50 up from $200. Because trading is a confidence game I don’t expect this to change anytime soon.
New Highs in 2016
I predict there to be new recent highs in the price this year. There is still a nice uptrend and there will surely be some good news that will make it move again. Also considering that many economies in the world are on the verge of collapse, this will also bring more interest into cryptocurrencies as trust into fiat is shaken. We can look back at the collapse of the economy of Cyprus that made Bitcoin climb.
Also the mining reward will halve in the summer of 2016. This will cause a bit of a supply & demand disruption that is also very highly likely to make the price of Bitcoin rise even higher.
That aside there are now more companies accepting Bitcoin payments than ever before, there are now more Bitcoin exchanges and more and more startups are popping up everywhere. Some of them blatantly brilliant, some of them likely to become a huge success.
I am excited to see where the Bitcoin price will go this year. One thing I am definite of – Bitcoin is here to stay.