Bitcoin Price at a Critical Weekly Level
Bitcoin price analysis and forecasts. What’s next – the continuation of the upwards trend or a downswing?
This week, the BTC/USD price has approached a turning point. What will happen next - the continuation of the upward trend or a downswing?
Starting on February 22nd, a downward movement started forming which could potentially break the continuous upward trend that started back on the fourth of this month.
This movement was supported by almost all fiat currencies, thus creating an environment for further decline.
It is worth noting that a more pronounced BTC/USD trend has started as of February 23rd, when the NZD/USD and CAD/USD pairs joined the overall pattern.
Among the reasons which could have caused the fall of most fiat currencies are the negative news about their respective economies:
Germany - the Business Environment Index turned out to be lower than the predicted level of 107, at an actual 105.7 mark.
This index is based on a survey of industrial, construction, wholesale and retail businesses.
UK - hearings were conducted in Parliament on inflation issues, during which the head of the Bank of England, Mr. Carney, remarked upon a potential increase in interest rates.
USA - failed to meet the expectations regarding the Consumer Confidence Index with an actual rate of 92.2, as opposed to the anticipated value of 97.4.
This index is based on a survey of households across the country about their confidence in the nation's economy.
The current midday situation is at a turning point between two potential scenarios:
The upward momentum could turn out to be a correction, which will be followed by a return to the $410 level.
Alternatively, there may be a new wave of growth forming, which will fortify at $415, and then continue moving upward until reaching and passing the minimal target of $440.
Traders should be opportunistic. The most benefit is to be had when a movement stops and is then followed by another, stronger one.
The $410-$420 level is exactly the kind of point which may serve as either a support level for a further upward trend, or a turning point for a downswing, in case the price breaks through it and fortifies below.