Weekly Bitcoin Price Analysis: Trends and Forecasts

Throughout the past week Bitcoin’s price followed a sideways trend in a range of $440 - $460. During the week, positive macroeconomic indicators from the US were announced, including an increasing of the interest rate to 0.50% for the first time since 2006. As a result, the Dollar was significantly strengthened against all currencies. Recent decisions of the ECB and the Fed have also led to increased demand for the Dollar. However, it had almost no effect on the value of Bitcoins. Bitcoin ended the week with a price of about $458. We asked Tomi Hrovatin, developer of HODL Tools for trading from Slovenia, about the expected price of Bitcoins:

“As always there are two outcomes possible. If we look at Bitfinex, we can see a clear range between 448.8 and 646.6 HODL SR Levels. We are at decision point either to continue the bull trend or call it for this year. I marked two important levels. Once they are breached, we will know the trend. In my opinion, there are only two possible outcomes: either we go straight for the bull level and march up to 500 or we range more and go for it later. “

We also believe that Bitcoin has the potential to grow to $500. But it should be noted that at the end of the year investors more often choose to close open positions and take profits. Therefore, when Bitcoin reaches the level of $500 it is possible that a rollback will start soon after. In any case, the rising price of Bitcoin will affect the quantity demanded. But whether it could cause demand for Bitcoin in the near future, this question remains open.

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

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