Bitcoin Price Market Analysis Week 32
In this price market analysis week 32 we see the price of bitcoin is in decline again. The technical signals have been clear.
There was support that formed at US$580. The price had declined well below that in trading towards the end of the week. With this we see that support levels have now turned into resistance. For a more detailed analysis of support and resistance, check our trading school.
Now short terms traders can look out for a move upwards to the descending trend line. If it does occur its a good opportunity to minimise any losses. Because the down-trend will likely continue in the short term. In this first instance technical analysis indicates that we could very well test recent lows at US$ 565.
If the bear gains momentum we could see again the previous lows at around US$ 550. From there we would even need to look out for US$ 500 as the potential reversal level.
The bears are in control on technical analysis, in the short term. And US$ 600 seems just our of reach.
Macro Factors and Price
The longer-term trend is bullish. A recent detailed price analysis published by Coindesk pointed to a few macroeconomic factors to support this sentiment. Not least of which was the Chinese Central Bank’s manipulation of its local currency.
— Tuur Demeester (@TuurDemeester) May 28, 2016
Bitcoin is always at the forefront of Bitcoin trading and activity and sentiment in that country greatly affect volumes and pricing. Local currency manipulation and devaluation is often a strong buy signal for bitcoin. Because of its unique attributes, bitcoin is perfectly suited to citizens looking to hedge and also seeking a tool to evade capital controls in that market.
Watch China markets, trading, volume and economic news closely.