Bitcoin and Ethereum Price Forecast – Consolidation Is the Name of the Game
Bitcoin prices continued to consolidate and range, as we have been mentioning in our forecasts over the last few days. With the markets and the traders getting busy in dealing with the volatility in the fiat currencies, the bitcoin traders have been unable to spend too much of their focus on bitcoin for now and the sheen seems to have been lost from the bitcoin in the short term. We believe that it will only be a short term phenomenon and that the focus will be back in the bitcoin prices in the short and medium term and we should then be ready for the next leg of the bull run.
It has to be understood that the global trading dynamics also have a large impact on the bitcoin trading and it is also believed that the gold prices have an impact on bitcoin and with these taken into consideration, it is understandable to see the bitcoin bulls struggling to push the prices higher during this time. We are seeing a lot of volatility and choppiness in the global markets and we are also seeing the gold prices under pressure due to the improvement in the outlook for the euro and the pound and these are bound to have an impact on the bitcoin prices.
This can be seen in the choppy kind of trading that we are seeing in the bitcoins over the last few days and this is likely to last during the short term. Traders would be well advised to load on their longs on defined areas of support in anticipation of the next leg of the bull run. Till that time, traders would be be well advised to stay away from bitcoin and look how the price action flows.
Bitcoin Forecast
Technically, the big range is well defined between the $2200 and the $2800 areas and we expect the trading to happen in this range in the short term as the market sorts itself out and the investors and the traders begin to reassess and then decide on which way they would want to go. We believe that the traders are a bit apprehensive at these high levels and are waiting for some low point entry.
Ethereum Trading Weakly
Ethereum prices have also been moving downhill over the last few days as the dollar begins to steady itself across the board in anticipation of stronger data in the upcoming week. We have seen the ethereum prices drop from their highs of around $320 to the $260 range over the last week or so. The confidence of the traders also seem to have been dented a bit by the large and unexpected drop in the prices of ethereum to a fraction of their value a couple of weeks back and it is likely to take some time for it to regain the confidence of the traders.
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This article was originally posted on FX Empire
