Yesterday Bitcoin was in trading at the level of $385. By the end of the US session, the price had dropped to $366 again, and then rebounded to $372. We asked Vishal Gupta, Founder of Bitcoin Alliance India, CEO at SearchTrade, and Director at Moving Trumpet: what the price of Bitcoin will be in the next 24-36 hours? Will the the price decline to $350? He said:
“Most traders who bought in at last fall seem to have booked their profits. Going forward I see buying support at $360 over next few days. In medium term I am bullish on price of bitcoin and see it breaching $450 again.”
Today, investors will be attracted to the releases of important macroeconomic statistics. In the Euro zone the index of consumer prices in January will be released. Forecasts are 0.4%, while previous data was 0.2%. Also a report on US GDP for the 4th quarter will be published today. The forecasts are 0.8%, previous data 2.0%. However, the industrial sector in the 4th quarter decreased by 1.49% compared with growth in the third quarter of 0.9%. This factor can slow down the further growth of the US economy. At the time of the release of macroeconomic data the Euro positions may straighten and place pressure on Dollar, which will fractionally strengthen Bitcoin.
Today, January 29 2016, we expect Bitcoin price movement within the ra $370 - $390. Possibly we will see a decline to $360.
The support level is $360, while the resistance level is $390.
Let’s continue the theme about Bitcoin being an investment instruments. Do you think that the fall in the global markets and the decline in the price of Bitcoin are related? Bitcoin price movement because of fundamental and technical reasons, or because of mathematical rules that are not related to the global economy?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.