Bitcoin Price Forecast – Prices Fall On Pressure from Dollar

We had mentioned in our forecast yesterday that the bitcoin prices are likely to fall in the near future, both fundamentally and technically as well. We had presented this as an opportunity for the traders to sell bitcoins and make use of this move. The long term trend for the bitcoin prices still seems to be bullish but the short term trend seems to be the opposite as the price pressures due to the competition posed by the new emerging currencies and also due to the strengthening of the dollar seems to be taking a toll on the bitcoin prices.

Yesterday, the dollar strengthened across the board on the back of some strong durable goods data and the market is hopeful that this might signify a trend in the short term where the incoming data from the US would continue to remain strong which will help to support the dollar and also make the decision making easy for the Fed as far as the next rate hike is concerned. This trend will then place a lot of pressure on the prices of bitcoin in the short term.

Also, yesterday, we had mentioned about how ethereum and other cryptocurrencies are eating into the demand for bitcoin and in the short term, this is likely to affect the demand and prices of bitcoins. But, we believe that in the medium and long term, this would be beneficial for the bitcoin industry as it will bring in more liquidity into the cryptocurrency markets and thus help in the growth of the entire industry. So, for the bitcoin traders, it is time to bear these difficult times for a brighter future.

Forecast

Technically, the region around $2480 is likely to act as a strong resistance which should hold the prices from moving further higher for now. With that being the case, we should see the prices moving lower in the short term and we should be seeing them move towards the support at around $2200.

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