On Thursday, Bitcoin price was moving up but could not overcome $420. Today during the Asian trading session Bitcoin dropped to $400, which can be regarded as a technical rebound after the recent price rally.
The fall in Asian markets on Wednesday, January 20 2016 was transferred onto world stock markets. Stocks of France, Germany, Belgium, Italy and Spain fell by 3-5%. The US Dow Jones fell by 1.56%, NASDAQ 0.12%.
As can be seen from the beginning of this year there are active sales of the world's raw materials stocks. However, investors are in no hurry to buy these stocks, hoping that eventually they will drop even further. Considering this, investors try to keep the currency for desired time. So what will happen to the price of Bitcoin? When will it resumes its growth? Will the fall in world markets affect Bitcoin? We asked these questions to our experts and received the following answers:
Simon Dixon, CEO BnkToTheFuture.com and Fund Manager Bitcoin Capital:
“There will be a lot of speculative cash looking for a new home as investors liquidate property, stocks, commodities and other asset classes as we head into a deflationary environment. Investors will flight to the safety of cash and bonds. There is only one currency that that will work if the financial system gets as bad as many are forecasting and that is Bitcoin. I expect a lot of new investors and speculators to come in and support on upward pressure on Bitcoin price this year. Now Oil and stocks are crashing, we are starting to see Bitcoin support grow.”
Patrick Dugan, CFO at Omni Foundation:
“I don't want to claim I'm a fully-fledged quant but I do know a thing or two about covariance and it seems absurd to say that a thing with a few billion market cap. is going to correlate to volatility in a multi-trillion dollar asset when there are multi-billion dollar small-cap stocks that fluctuate up sometimes when the market dumps or visa versa. The highest market correlation I could find with bitcoin was with silver in 2015, but that correlation has since diminished.”
Vishal Gupta is the Founder of Bitcoin Alliance India, CEO at SearchTrade, and Director at Moving Trumpet:
“Will wait till weekend trading to build an opinion on this market.”
Today, January 22 2016, Bitcoin will be moving within the corridor of $390 - $420. Support Line $380. Line of resistance $420.
Despite the potential growth, buyers are in no hurry to build up long positions. Sellers also took a pause and are not in a hurry to sell. Bitcoin is in need of impetus for further upward movement. Yesterday's drop in the markets promoted Bitcoin growth by $20. Which factor for the growth of Bitcoin could be next?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.