The falling Bitcoin price and last week’s low trading volume contrast sharply with the high a week earlier. On November 13th, the Bitcoin price returned to 458 US dollars.
The Bitcoin secret course high of the week before last
Market observers have already started drooling as many have expected a new Bitcoin secret price rally. Nasdaq blogger Martin Tillier, who has a lot of experience in the forex markets, saw a bullish interpretation in the short-term upswing. He pointed out that the dollar index had reached a monthly high and was slowly returning to much. This means that Bitcoin was trading against the dollar and gained value.
Market observers were already drooling, as many expected a new price rally. Nasdaq blogger Martin Tillier, who has already gained a lot of experience in the currency markets, saw a bullish interpretation in the short-term upswing. He pointed out that the dollar index had reached a monthly high and was slowly returning to much. This means that Bitcoin was trading against the dollar and gained value.
Volume of last week’s BTCBTC trading volume
As a result, the BTC returned to regular trading at 350-370 USD, but hopes for a new bullish sentiment remain. Tillier’s analysis remains optimistic as well. But also in a scenario where the Bitcoin price does not reach new highs Tilliers writes:
“This downward trend to end depends completely on when higher low points and higher highs are set. But if the BTC/USD price stays above the 350 dollar mark, we will soon see this new pattern.”
Can central banks drive up the Bitcoin price?
The Bitcoin price could receive unexpected assistance from the Chinese central bank in the next few days. It sounds even more incredible that the central banks of Japan and Korea could also give Bitcoin a boost.
It is not the case that the bankers in East Asia have decided to introduce their own regulation. They are doing something more predictable – they are firing at each other in a “war” that is often seen as a new “currency war” in the region.
It all started with the Japanese central bank unexpectedly cutting interest rates in October. This had depressed the yen price in relation to the USD. This allowed Japan to increase its exports. Korea and China followed suit. The Peoples Bank of China announced a rate cut last week.
In the last six months, according to Bitcoinity, 76% of the total trading volume was inBTC/CNY. So if the yuan becomes cheaper, Bitcoin would appreciate in value.