The overall Bitcoin price move during the 4th week of the new 2016 is definitely bearish.
After reaching $405.97 during the last hours of the 3rd week, the price started the new week with a stronger decrease during decent trading volumes.
Week 4 Bitcoin Price Behavior
The above chart is bitcoin price action over the past week. After breaking down to a low $352, the price retraced this week, spiking up to a local high at $428 on Wednesday January 20th at 8pm UTC. The price of bitcoin is often swayed by news speculation; bitcoin was fortunate to receive a ton of mentions at the World Economic Forum this week, capped off by a report by the IMF subtly extolling its value proposition. $428 peak failed right below a resistance level at $431; price went on to retrace the whole spike down to $371. At the time of writing this, bitcoin is trading at $399 on Bitstamp.
The mainstream media seemed to have been busy at work in the past week squeezing hard Mike Hearn’s farewell article to the Bitcoin community for any drops of evidence to support the hypothesis that the cryptocurrency is no longer a viable idea.
On January 14, 20:00 hours UTC, bitcoin price broke $430 level support, falling sharply to a $352 low in a series of cascading sell offs. The chart above, on a 12 hour time frame, shows an impulsive red candle stopped short at $358, a support level where price has consolidated.
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