Bitcoin Price Likely To Test $680 levels in 2016

Bitcoin price has come into limelight following the recent price movement. BTC/USD soared to $502 levels last month, later dropped to $294 levels and has been moving northwards again. Continuing its upward trend from the past two days, the pair currently trades at $376.84 levels.

FxWirePro forecasts that in 2016, there is a probability for Bitcoin price to reach $630, and a break above could see the pair testing $680 levels. Short-term major resistance is seen around $538 (38.2% retracement of $1163 and $152).

On the flipside, $280 levels will act as a major support and a consistent break below could drag the pair to $230 levels and then to $188. FxWirePro adds that the chances of downward movement are less however. Overall trend reversal can be seen only below $150 levels.

Money Morning explains that with more and more integration of Bitcoin into the world's financial system, its value will necessarily rise. That's because built-in scarcity (only 21 million bitcoin will ever be created) when combined with the rising demand will push BTC/USD higher.

Gil Luria, an analyst with Wedbush Securities, raised his 12-month Bitcoin price prediction from $400 to $600 last month.

"We believe bitcoin and its associated blockchain technology have the potential to disrupt the existing financial infrastructure over the next several years, and believe the value of the Bitcoin currency (BTC) will benefit from this trend," Luria wrote in the report.