For those thinking the storms of December are over I've got bad news, were sitting in the eye of it now. By my analysis January may be one of the most interesting months in crypto since Bitcoin's initial rise to over 1000 USD. I'm not saying this month will be all bad, in fact far from it, but this month will definitely be interesting. Month to month exchange volume seems to be growing, and with the growth in volume comes volatility. Based on short interval charts it looks like were going to see an early platform around 854 (BTC-e Prices) from there the show begins.
According to Google Trends data interest in Bitcoin and Cryptocurrency is continuing to grow although new legislation in Chinese markets has left a large hole in cryptocurrency markets the gap is quickly being filled in by growing interest in European and American markets. Advances in payment methods, escrow markets, and overall accessibility will fuel upward momentum mid-month however these forces will have to fight downward momentum from new legislation in Indian and Chinese markets early in the month. The net result will likely be a lazy climb to previous supports followed by a short period of recovery from political bumps in the road. After a slow recovery to $850 its tough to call, the fate of Bitcoin for the month of January lies in upcoming technological advances. Keep an eye on
Coindesk for any news about payment processing and debit card integration, I think there is good reason to believe these advances could serve at a catalyst for a surge to new highs, but without them Bitcoin will likely just sink back into a downtrend.
I'm planning on posting a second segment to this analysis mid-month since there is only so much I can say without confirming the developments I think will happen, but for now the take home message is; look for advances in payment processing if you see them buy, if you don't see any news sell at roughly 850 and wait.
