As we expected, yesterday Bitcoin price was near the level of $430. But sellers could not lower the price below $426 and buyers failed to raise the price above $432.
We decided to ask experts: How long will this correction proceed? To what level should we expect Bitcoin to decrease? And got the following answers:
Vishal Gupta is the Founder of Bitcoin Alliance India, CEO at SearchTrade, and Director at Moving Trumpet:
“Not a decline market has picked up a range wherein there is resistance at 420 on downside and 460 on upside. This is unusal spread by common standards but I guess in Bitcoin trading it is acceptable. Great time to cash in.”
Tomi Hrovatin, developer of HODL Tools for trading:
“As per chart from 4th of January, price broke Main HODL SR (Bull Tgt1@449USD) with ease and was stopped by Main HODL SR (Bull Tgt2@464USD). A retrace was expected and Bull Tgt1 should have held as support to sustain the bull momentum. But failed. Now, we might range between Bull Tgt1 and Main HODL SR (Bear Tgt1@419USD) until one side gains enough strength to push price over critical HODL SR levels (Tgt1 & Tgt2). Overall, HODL TA is long and mid term bullish but short term neutral.”
Today, January 14, 2016 some economic news should be released, such as the report on GDP in Germany in 2015. The previous rate was 1.5%, forecasts now are 1.6%. For the first three quarters of the previous year the GDP in Germany was growing to 1.72%. Indicators in the manufacturing and non-production sphere suggest that the growth rate in the fourth quarter should also be rising. This data can support the Euro and may weaken the US Dollar. This factor may also have an indirect effect on the price of Bitcoin.
Today, January 14, 2016 we expect Bitcoin price to fluctuate in the corridor of $420 - $440. Still the price corrections are possible to continue to the level of $410. The level of support is $410. The resistance level is $440.
Considering that in 2016 Bitcoin price is predicted to rise, the question arises: how quickly will the uptrend recover?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.