Daily Bitcoin Price Analysis: Bitcoin Doesn’t Pay Attention to the Dollar?
Dollar had significantly strengthened against all other currencies but the price of Bitcoin felt almost no effect.
Yesterday, the Fed raised interest rates to 0.50%, long-term forecasts for inflation were revised in a negative direction, but the forecasts for GDP in a positive. The final communiqué noted that economic conditions will testify in favour of a gradual increase of the key rates. This means that in decision-making to change monetary policy the Federal Committee on Open Market (FOMC) will now be guided only by the positive macroeconomic statistics, just as it was previously. Considering this news, yesterday the US Dollar had significantly strengthened against all other currencies in the foreign exchange market. For example, the price of the currency pair EUR:USD fell more than 100 points. However, the price of Bitcoin felt almost no effect. During the Asian session, Bitcoin was traded in the range of US$440 - US$460.
Today, the report of the US balance of payments in the third quarter of the year will be published at 01:30 p.m. London time. A strengthening of the Dollar has a negative impact on exporters, thus the negative trade balance in the third quarter is predicted to be 6.21% more than in the same period of 2014. Today, investors are expecting that this data will be even greater, which would again support the Dollar.
Today, December 17, we expect the continuation of the sideways trend for Bitcoin’s price in the range of $430 - $460. The resistance level is $470, while the support levels are $425 and $410.
As we can see, even though the Dollar price is strong, Bitcoin continues to grow slowly. This raises the question: why does publication of such important indicators, that so strongly influence the currency market, have no effect on Bitcoin? What factors can then affect the value of Bitcoins? Is it only cryptocurrency news that may have an effect on the Bitcoin price?
The analysis and prognosis are the personal views of the author and are not a recommendation to buy or sell Bitcoins.
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