As we expected, the BTC/USD pair was moving in a sideways trend yesterday. Without reaching the first level of support at $340 the Bitcoin price rate began to rise to $365. However, while Bitcoin is overbought and the Dollar is strong, bulls don’t feel optimistic enough. The main price factor today is the publication of the European Central Bank decision on monetary policy followed by speech of ECB President, Mario Draghi. During the first moments of the speech we can expect a highly volatile price on the Euro, which can affect the Dollar’s exchange rate, and, by extension, Bitcoin’s. Until then we expect a continuation of the sideways trend. The support and resistance levels remain at the same lines as yesterday.
So today the levels of support are $340 and $320, while the levels of resistance are $400 and $420. During the speech of Mario Draghi, high volatility and the breaking through either support or resistance levels is possible.
This analysis and forecast are the personal opinion of the author and are not a recommendation to buy or sell any amounts of Bitcoins.