Daily Bitcoin Price Analysis: Bitcoin Has Not Enough Forces To Grow
Today during the Asian session Bitcoin price dropped sharply because of yesterday's decision of the Federal Reserve on interest rates.
Yesterday, January 27 2016, Bitcoin price was $390 - $400. And today, January 28 2016, during the Asian session the Bitcoin price dropped sharply to $382. The impetus for this reduction was yesterday's decision from the Federal Reserve on interest rates, which remains unchanged. Monetary policy also remains the same. However, according to the Fed the interest rate may be increased in March, and that depends on the future macroeconomic indicators.
Investors can not ignore the decline in oil prices and the decline in the markets of China. Now they are seeking to escape from additional risks and protect their investments by buying the US Dollar. Bitcoin, among other risky assets came under pressure, as we have seen recently.
Sellers are trying to bring the situation under control. But the limited number of holders and the specific features of Bitcoin will constrain the bearish trend. The level of $380 is strong enough and hard to overcome. If, however, the bears are able to overcome this level, the next level of support is $350.
Today, January 28 2016, we expect the Bitcoin price to move within the range of $380 - $400.
Possible breakthrough of prices down to $375 and $370.
The level of support is $380 and the resistance level is $400.
Topical question: Most investors are confident in the future growth of Bitcoin. Why then, during the downturn in global markets, do investors not consider Bitcoin, as an asset of refuge, and do not buy it to protect their investments?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.