Online Forex broker
Bitcoin had been in a stagnation for a long time. For more than three months, the price of Bitcoin hasn’t risen above $10,000 and hasn’t fallen below $6,000. However, it seems like Bitcoin is going to break the consolidation times.
On June 12, Bitcoin broke the support at $6,500 and reached the lowest levels since April 1. Next day it tested the further support at $6,000. 50-day and 100-day MAs are moving down giving a negative signal to Bitcoin.
Let’s have a look at reasons that lead to a Bitcoin’s weakness.
A fall of the Bitcoin price creates danger for banks that hold bitcoin futures. 3 largest rating agencies Standard and Poor’s, Moody’s, and Fitch can lower the credit ratings of such banks because of the high volatility of Bitcoin. Although banks don’t participate in the cryptocurrency trading directly, they have an indirect impact on the market.
What about forecasts?
It’s extremely difficult to forecast the future of Bitcoin. We all remember that analysts predicted a strong rise of the cryptocurrency to $25,000 after the Consensus conference in April. However, the rise didn’t happen. The Fundstrat’s co-founder Tom Lee still remains bullish about Bitcoin. He believes that the digital currency will reach $25,000 by the end of the year.
However, other analysts are not so sure. According to their predictions, Bitcoin can reach only $14,300 by December 31.
As we can see, the forecast levels are much higher than the current position of Bitcoin. Up to now, the situation is unclear. Until Bitcoin stays above the psychological level of $6,000, there is a possibility of its rise. However, if Bitcoin breaks below $6,000 and $5,500, we can anticipate a further strong fall to $3,500.
Making a conclusion, we can say that Bitcoin is anticipated to remain at low levels for a long time. Media will continue to weigh on the Bitcoin price. Until Bitcoin gets a fresh wave of positive news, it is supposed to be weak.
In times of political and economic uncertainties, analysts recommend investing in safe-haven assets. However, since recently, the USD with the weak American economic data and the easing monetary policy has been losing its status. What about the JPY and XAU? The situation is unclear.
Walmart stock price has been in a downtrend recently. Do we have to worry?
This week brought various economy news releases related to GBP. What is the layout of the British pound?
On the W1, Brent oil formed a bullish “hammer”…
In times of political and economic uncertainties, analysts recommend investing in safe-haven assets. However, since recently, the USD with the weak American economic data and the easing monetary policy has been losing its status. What about the JPY and XAU? The situation is unclear.
USD/CHF formed a “hammer” candlestick on the D1. The most recent price low wasn’t confirmed by the Awesome Oscillator on this timeframe.
Your request is accepted.
A manager will call you shortly.
Internal error. Please try again later
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
