Weekly Bitcoin Price Analysis: Standoff Between Bulls and Bears Will Continue
Bitcoin price has shown an optimistic trend in the beginning of the last week. Bearish trend gave way under the pressure of buyers, and on Monday 30 BTC/USD pair exchange rate reached $376 mark.
Bitcoin price has shown an optimistic trend in the beginning of the last week. On November 26, bearish trend gave way under the pressure of buyers, and on Monday 30 BTC to USD pair exchange rate reached $376 mark.
We spoke with Jeffrey A Tucker, Director of Digital Development, Foundation for Economic Education about the current Bitcoin price position and investors interest in this cryptocurrency. Jeffrey A Tucker said:
"Last year at the end of the year, we saw a serious softening of the dollar exchange rate. In contrast, this year, the price is showing strong upward momentum. One major change is a large increase in transaction volume. The effects of this can run two ways: more sell orders put downward pressure but more transactions can also indicate increased demand for Bitcoin as a useable monetary technology. We are seeing the latter in this case. If the price sustains through the end of the year, we'll have pulled out of the prevailing bearish sentiments."
The forecast of renowned expert sounds optimistic. Especially considering that we do see the serious growth of Bitcoin trading volumes.
However, this week traders have tempered their enthusiasm and from the very beginning of December pair of BTC/USD has slowed down in the corridor of $340 - $380. Last week we have seen the sideways trend and indecision moves of traders. On Friday, the pair BTC/USD was at the level of $356.
However, Bitcoin has a lot of strength to lift up to around $450 and $500 this month. The fact that the sales stopped, and the psychological level of $ 320 was not passed speaks about the impending powerful impulse for buying Bitcoins. But we can’t forget about the strong Dollar. On Friday December 4 US has published latest macroeconomic indicators, including data on the changes of employment figures in non-agricultural sector. The indicator was 211K against the expected 201K, which is positive and contributes towards the Dollar strengthening it’s position.
Thus, we expect that in the first half of next week, the standoff between bulls and bears will continue. If Bitcoins buyers will be able to pass the level of $390 it should open the way to the level of $420 and $430. Alternative scenario envisages an increase in bears activity and increased sales to $340, $320 and $305.
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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