Bitcoin and Ethereum Price Forecast – BTC Prices Continue to be Weak
The volatility continued in the crypto markets as a combination of traders taking profit, fear of regulation and crackdowns in some of the biggest markets of the world and panic selling led to a crash in the crypto prices and bitcoin was no exception. The prices broke through the $10,000 region in a period of manic selling and made its way towards the $8000 region. We had been mentioning the regions of $10,000 and $8,000 as two points of support in our forecast and we we saw a stalling of the fall and a reversal and bounce in the prices from the $8,000 region and now the prices trade above the $10,000 region as of this writing. The market is yet to settle down from the manic selling and hence we are likely to see the volatility continue in the short term.
BTC Prices Find Support at $8000 Region
As we said yesterday, the move lower and the amount of selling seems to be quite exaggerated and hence likely to reverse at any point of time. It also has to be noted that yesterday was the expiry day for the first bitcoin futures contract and maybe, that had a bearing on the markets as well as the large investors begin their play in the markets. We had said that the introduction of the bitcoin futures could bring in a whole new dimension as far as trading in bitcoins is concerned and we are seeing some of the effects of that now.
The ETH market also got caught in the selling frenzy and this drove the prices lower through the $1000 region and as far as the $800 region before some sanity returned to the markets and the buying picked up. This has helped the prices to bounce and it now trades in the $950 region as of this writing. We continue to believe that Ethereum has pretty strong fundamentals and hence likely to dominate the crypto markets this year.
Looking ahead to the rest of the day, expect the markets to begin to settle down slowly during the course of the day and this should then be followed by a period of consolidation and a bullish leg in both the BTC and the ETH markets in the short term.
This article was originally posted on FX Empire
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