The recent consolidation in bitcoin futures has provided several trading opportunities with large swings in this leading crypto currency. Traders who were long over the past couple of weeks have surely taken their blows, but it looks as if support can be found at the 13000 level. Consolidation within the 13,000 – 16,000 seems to be comfortable for buyers and sellers at the moment. Volume is slowly increasing, so we should see more activity come into play.
Slowly but surely, while we await any significant regulation news to restore bitcoin to its past graces, folks like Jamie Dimon have come out saying that “he regrets calling bitcoin a fraud and believes in the technology behind it.” Although a strong endorsement for crypto currencies as a whole (since he was speaking specifically about his confidence in blockchain), traders must still be weary of this volatile giant. We will continue to monitor the upside resistance of 16,800, while using the psychological 13,000 level as support.
Bitcoin Jan ’18 Daily Candlestick Chart