Yesterday Bitcoin price moved to the level of $430 but today, January 15, 2016, during the Asian trading session Bitcoin dropped sharply to $417 and then jumped to $420.
The relevant question now is – for how long will we see a decline in Bitcoin price and when should we wait for growth to resume? That's what Tone Vays, Head of Research at BraveNewCoin, answered:
“I still think we will see prices in the mid to upper 300's before there is another move to the upside”.
Yesterday, a report on GDP in Germany was published and it showed a growth rate of 1.7% due to government spending, personal consumption and investment. Positive data on Germany's GDP has strengthened the EU currency.
Today we expect the release of other important macroeconomic news from the United States:
- The base index of retail sales for December. Forecast 0.2%, previous 0.4%.
- The Producer Price Index (PPI) in December. Forecast 0.2%, previous 0.3%.
- Retail sales for December. Forecast 0.1%, previous 0.2%.
- The index of consumer sentiment in January, a publication from the University of Michigan. Forecast 93.0, previous data 92.6.
At the time of release, the news may increase volatility in the market, which could have an impact on the price of Bitcoin.
Today, January 15, 2016 we expect Bitcoin price move in the corridor of $410 - $430. The level of support is $410. The resistance level is $430.
As you know the European currency is considered as one of the funding currencies, while the US Dollar is more often considered as a risky instrument. Earlier, the US Dollar was the main funding currency. Earlier during the critical moments of the crisis, investors bought the Dollar, to keep their savings. But now they buy the Euro. The question arises: does Bitcoin depend on the value of the Euro? As we know, the Euro is now at its lowest level since the introduction. What will happen to Bitcoin, when the Euro begins strengthening? Will Bitcoin now react to the strengthening of the Euro?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoin.
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