Over the past week the Bitcoin price has grown by more than 12%, and is right now at a $445 mark. Not bad for those who bought in the beginning of the week – they are now rewarded with a really successful weekend.
According to the Livecoin platform, during most of the week the traders’ sentiment was positive as they were mostly buying. Although there was some degree of uncertainty on the market back on Monday and Tuesday, as the numbers of buyers and sellers were roughly equal.
However, starting on Wednesday, the market was decisively taken by the buyers, which led to the upwards trend that was stable right until Sunday.
It’s important to note the global economical picture, because it affects the overall rates of fiat currencies. If fiat currencies are dropping, the speculators are going to sell Bitcoin and buy fiat, which will in turn cause the decline in BTC prices.
Overall, the situation with main fiat currencies was unclear during Monday and Tuesday. There was no pronounced movement influencing the USD exchange rate.
The 17th and 19th of February were of key importance. The reason for that were important news from USA:
17th – the volume of issued building permits. It was announced to be 1202K, which is higher than the experts predicted it to be (1200K), but lower than back in January (1204K).
19th – the consumer price index announcement. The experts were expecting a decrease of 0.1%, compared to the previous month (when the mark was at 0.1% for the monthly metric and 0.7% for the yearly one). The actual data has beaten both the anticipations and the previous month’s results: 0% monthly and 1.4% yearly. Additionally, there was an announcement of the index without food and energy prices taken into account. The data displayed a significant 0.3% growth, which happened most recently back in August 2011. Consumer price index is an important indicator of inflation rates.
There was a significant simultaneous growth across the GBPUSD , EURUSD, AUDUSD and NZDUSD pairs, and respective decline of USDCAD and USDJPY.
It’s exactly this simultaneous movement across several principal currencies which can influence the USD rates as a whole.
What is to be expected?
At the current time, there is still potential for growth among fiat currencies. This factor, coupled with the positive attitude of Bitcoin traders allows for the continuation of the upwards BTC trend. The target right now is $500 per bitcoin.
The support level for the current trend is $420.
If the price falls below that level and stays there, there is a probability of further decline, potentially down to the minimal price of $380.