Daily Bitcoin Price Analysis: Bitcoin Sideways Trend Continues
On Tuesday, the price of oil fell, which affected the Asian stock markets immediately. But Bitcoin is moving in a sideways trend.
Our forecasts for yesterday came true, Bitcoin price was in the corridor of $390 - $400 and near its upper limit. The sideways trend has been going for several days now. The rise and fall in global stock markets had a limited impact on the price of Bitcoin.
On Tuesday, January 26 2016, the price of oil fell below $30, which was reflected on the Asian stock markets immediately. Shanghai Composite Index fell by 6.4%, Shenzhen Composite Index fell by 7.12%, Nikkei dropped by 2.3%, Topix went down by 2.3%. And the oil market today are in surplus. Iraq increased oil production in 2015 and plans to increase it further in 2016. Iran, which recently withdrew from sanctions, also plans to increase oil production. It will further oversupply the oil in the market, thus lowering prices.
Another reason for the collapse of the Chinese stock exchanges is the outflow of money from the country. In December, China withdrew $158 billion. Investors leave China because of the fear of devaluation of the Yuan. Therefore, in the future we can expect a continuation of the decline on the World’s stock markets. Bitcoin, however, doesn’t react on the changes in the market environment. But we can expect in the nearest future that the price will move up.
Today, January 27 2016, the Fed will release a decision on the interest rate. In December, the Fed raised interest rates, that showed confidence in the US economy. Today, it is expected that the rate will not increase. However, comments on the Fed's decision are especially interesting, as it will reflect the current situation of the US economy, as well as plans for monetary policy.
For this reason, today, January 27 2016, Bitcoin might attempt to reach a level above $400. We expect the price to move in the range of $390 - $410. At the time of publication of the Fed's decision the position of the US Dollar could increase, which will apply some pressure to Bitcoin. The support level for Bitcoin today is $380. The resistance level is $410.
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.