Bitcoin prices have failed to find the support that we had expected it to and have been crashing lower over the past few days. The prices had touched the $20,000 for a very brief while a few days back but since then, it has been dropping lower as the prices have gone as low as less than $14,000 over the last 24 hours but have since bounced back to trade above the $14,500 region as of this writing. Though there has been a bounce, the risk continues to be on the downside as the traders and speculators begin to increase their dumping of the bitcoins as a means of profit taking as we head to the close of the year.
Prices Fall Below $15,000
One of the major exchanges, coinbase, has also had to shut down the buying and selling of bitcoins due to a glitch and that has only served to increase the panic in the markets. There has also been some good news as reports have come in that Goldman would begin trading on bitcoins but that has not yet helped t soothe the markets. We continue to believe that this fall is only temporary and likely to fall for the short term as the traders take profits and some jump ship to other coins but with the futures being introduced and big players entering the market, the bitcoin industry would only expand and this should lead the prices higher in the medium term.
The ethereum prices have also been dropping lower over the last 24 hours, following the cue from the bitcoin market, and after dropping below the $650 mark, we are seeing the prices recovering to trade above $700 as of this writing. We continue to believe in the inherent strength of this market for the long term.
Looking ahead to the rest of the day, we believe that the bitcoin prices would continue to trade in a weak manner and consolidation below the $15,000 region as the traders await the next spark for them to push with the next bullish leg. The ETH market should also consolidate and trade in a slow manner as we head to the holiday period which is likely to make the prices choppy.
This article was originally posted on FX Empire