Yesterday Bitcoin began growing again and moved up by $43 from the level of $380 to $423.

The reason for this was another fall in Asian markets on Wednesday, January 20 2016. Japan's Nikkei fell 3.7%. In Hong Kong, the Hang Seng Index also fell by 3.7%. Moreover, Hong Kong Dollar rates also decreased.

The Chinese stock market has also spent the last day in recession. The Shanghai Composite fell by 0.9% and continues falling. The market in South Korea fell by 2.3%. The  MSCI index of Asia-Pacific dropped to its lowest level since 2011 – falling by 2.6%.

Also yesterday, the price per barrel of Brent oil was lowered to the level of $28. Obviously, the reduction in oil prices was the reason for decline in Asian markets.

Meanwhile, Bitcoin’s price increased again, thanks to a fall on the stock markets. This once again proves investors' trust in Bitcoin in times of crisis. That in turn gives reason to believe that Bitcoin has a great potential for growth.

Bitcoin price chart

Today, a press conference by ECB President Mario Draghi will be held. Considering dropped oil prices, we should expect disappointing forecasts on inflation expectations and consumer prices. At the time of the conference we might see an increased volatility in EUR:USD, which could affect the value of Bitcoin as well.

Today, January 21 2016, we expect that Bitcoin will try to gain a foothold at $420 and to test the level of $430. By overcoming the level of $430 it will open the way to highs of $450 in January. The level of support is $ 400.  The resistance level is $430.

As you can see, the panic after the words of Mike Hearn has ended, and buyers have a new impetus to purchase Bitcoins. The question now is – will Bitcoin reach $500 by the end of January?

This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins