
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
2019-11-11 • Updated
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.
The EU plans to intervene in markets directly to curb rising energy costs, threatening to push the Euro area's economy into a deep recession.
US oil exports reached a record last week at five million barrels a day, according to Energy Information Administration data…
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
On Thursday, the 2nd of February, the Bank of England will publish its report concerning interest rates and inflation data for the Eurozone. Professionals and investors anticipate that Andrew Bailey’s lead team of policy makers will likely raise interest rates to 4%; the highest in over a decade, for the tenth time in a row.
The first FOMC meeting comes after a buildup of anticipation from traders and investors alike, as the markets await what posture the Fed will take regarding the interest rates; would there be a hike or a cut in interest rates?
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
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