Yesterday Bitcoin’s price was holding steady in the corridor of $375 - $387 as there were no releases of any news that could affect the price of Bitcoin. Sellers were unable to lower the price of Bitcoin below $375.
Today however, the financial markets promise to be intense. New macroeconomic indicators have already been published in China with GDP growth in the 4th quarter at 1.6%, against previous value of 1.8%. The data on volume of industrial production is 5.9%, the previous was 6.2%. Investment in fixed assets in December reduced to 10.0%, against the previous value of 10.2%. The volume of retail sales in December also decreased to 11.1%, while the previous data showed 11.2%.
As you can see, all indexes are worse than the previous, which can negatively affect the Yuan and may cause sales of risky assets on the financial market. This factor may provide substantial support for Bitcoin, similarly as in January 7 when PBOC devalued the Yuan sharply to the level of 6.5446 against USD. On that day, due to the collapse of China's stock exchanges and the world stock markets, Bitcoin rose by $25 to the levels of $430 to $455.
Today, we expect Bitcoin price movement in the corridor of $370 - $400. It does not exclude high volatility because of the reaction of world markets to macroeconomic statistics from China. The level of support is $370. The resistance level is $400.
As we see the fall of Bitcoin, if not stopped completely, has definitely slowed down. Buyers are preparing for new purchases of Bitcoin and sellers are in no hurry to sell. The question now is – could the price of Bitcoin return to a level of $455 by the end of January?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.