After the collapse to $353, Bitcoin’s price began rising back to $390. The panicked mood of the market players, which was caused by the action of Mike Hearn, did not last long. It is obvious that the current situation with the price of Bitcoin will gradually level off.
Patrick Dugan, CFO at Omni Foundation commented to CoinTelegraph on the situation:
“My point is the technical catalysts for selling create a situation where anyone with a position in the world has a motive to sell, vice versa to buy when it goes up. The cohort analysis of who are the major drivers of volume is tough to do because this isn't an MMO and we lack the data.”
Today, January 18 2016, important macroeconomic statistics releases could affect the price of Bitcoins. Last Friday, January 15 2016, saw positive data on the trade balance in the Eurozone. The volume of net exports increased by 23.6 billion Euros. This is 17.4% more than in the previous year. This is a positive factor for the Euro. But retail sales in the US for December decreased by 0.1% in comparison to November. The growth rates of retail trade in 2015 have also decreased by 2.5%, while in the previous year this rate was 3.42%.
Now Bitcoin price will most possibly move in the corridor of $360 - $400. The level of support is $360. The resistance level is $400.
Today’s most important question is: how long could the price of Bitcoin be under pressure from Mike Hearn’s statement? How quickly will the market recover from the shock and move to growth?
Today is appropriate to recall the great trader Jesse Livermore from Wall Street and his book "Reminiscenses of a Stock Operator", an extract from which is:
"Old man Partridge's insistence on the vital importance of being continuously bullish in a bull market doubtless made my mind dwell on the need above all other things of determining the kind of market a man is trading in. I began to realize that the big money must necessarily be in the big swing. Whatever might seem to give a big swing, initial impulse, the fact is that its continuance is not the result of manipulation by pools or artifice by financiers, but depends upon basic conditions. And no matter who opposes it, the swing must inevitably run as far and as fast and as long as the impelling forces determine."