Cryptocurrency market continues to see price action remaining locked within the range. This clearly suggests that nothing much has actually changed in the cryptocurrency market over the last 24 hours. Owing to the decentralized nature of market which lacks clear backing of any single economy or government it makes it highly difficult to predict future price actions. A look at the price history of the last two weeks suggests that the market is currently stuck between rock and hard place. What the market needs right now is a clear breakthrough in either direction followed by a sustained rally for the market to gain clues on next leg of price action be it bullish or bearish. As of writing this article, the BTC/USD pair is trading flat at $3878.1 up by 0.03% on the day while ETH/USD pair is trading flat at $132.82 up by 0.05% on the day.
Market Continues to Maintain State of Neutrality
Given the lack of major events and headlines that could influence a breakout, despite sharp price swings during intra-day action, the BTCUSD pair saw price settle down back in range and even during the price swings the pair was unable to breach past critical price levels be it to the upside or to the downside which clearly suggests that neither bulls nor bears possess the strength required to make breakout in immediate and near future trading sessions. Momentum indicator Stochastic RSI is seeing its signal line near the overbought region in the hourly chart for both Bitcoin and Ethereum, while signal line remains well in neutral level for both Bitcoin and Ethereum.
This suggests also supports the theory that in long term directional bias remains in neutral level despite varied volatility during intra-day trading activity. In the immediate future, the price action in the crypto market may see some level of positive price action as news has hit the market that Basel committee of Bank for International Settlements (BIS) – an organization made up major global central banks and widely considered as a major detractor of cryptocurrency market as finally decided to prepare guidelines to set up risk exposure and disclosure policies for major global banks to follow given increasing adoption of Bitcoin and Cryptocurrencies by major global banks and government institutions. This move could be seen as BIS opening up to crypto changing their stance from against crypto to neutral even if not positive and this is a major step for cryptocurrencies to grow as a financial instrument in global markets making it a positive news fro fundamentalist perspective.
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This article was originally posted on FX Empire
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