Last week the Bitcoin price showed mixed dynamics. After the terrorist attacks in Paris cryptocurrency was accused to be used as a method to finance their operations. The news on the international currency market was interpreted as a signal for bears to sell Bitcoins. As a result the Bitcoin price started to fall and reached the level of $317. However, the panic did not last long. Already by the end of the day on November 25th, the price of Bitcoin reached $332. On November 26th – 27th, Bitcoin was traded for $350, and by the end of the week at about $350.
The Bitcoin price volatility has been low in the cryptocurrency markets this week. Over the last month we have seen the growth of quotations to the level of $500 and downfall to $317. The jumps of the Bitcoin price this month were more than significant, which points out the high risks of cryptocurrency and its market volatility.
Our forecast for next week
Recently, we have seen increasing demand for risky assets, which are similar to cryptocurrency. Therefore, Bitcoin buyers should be active on the market but we should not forget about the strong position of the US dollar in the foreign exchange market these days and the dollar has its own buyers. Obviously, next week we will see a confrontation between bulls and bears, which will result in the beginning of a sideways trend. We can expect to see the upper price level, which serves as a line of resistance at about $400, next week. The support level is at $320.