Yahoo Finance Bitcoin and Ethereum Price Forecast – Prices Follow Technical Lines
We had mentioned in our forecast yesterday that the bitcoin prices are likely to correct further and consolidate and we had also mentioned that $3200 would be the first support region as a target for the bears. The price action that we saw yesterday followed the template to a T. This is one of the major advantages in trading a new instrument as most of the traders tend to trade it according to the technicals and existing information and if we follow the same information as the others, we stand a good chance of being correct.
Bitcoin Follows Template
Yesterday, we saw the bitcoin prices correct towards the $3200 support target and once the target was achieved, it was a region for traders to load themselves with bitcoin again and this included traders who had missed the breakout through the $3000 region last weekend and this buying has since led to a bounce in the prices as it trades comfortably above the $3300 region as of this writing. We expect this consolidation, with $3500 as the new ceiling, to continue in the short term and it is advisable for the traders to stick to the extremes of the range so that they can trade safely.
The ethereum prices also followed along technical lines and made its way towards the $280 support region over the last 24 hours and has since bounced and trades around the $290 region as of this writing. ETH is also likely to consolidate between the $280 and $320 levels for the time being as the traders take some profits and prepare themselves for the next move.
Forecast
Looking ahead to the rest of the day, we expect this consolidation and ranging to continue in both the BTC and ETH markets for today with increased focus on the ETH market. With the BTC mining reaching a tipping point and ETH mining also close to being there, the ETH miners would be forced to begin trading the ETH to keep themselves in the market and this increased demand is likely to bring in a lot of focus on ETH in the short term.
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This article was originally posted on FX Empire
