Bitcoin And Ethereum Daily Price Forecast – Bitcoin Up 9% On News of Improvement in Ranking Published by China

Bitcoin is on a steady bearish price action ever since its prices plunged below the $6,500. The total market cap of Bitcoin fell from a whopping $111 billion to $64.89 billion, which is a massive depletion of $37 billion dollars in a month. After two weeks of incessant sell pressure traders and analysts are giving up on bulls. While price action paints the picture of dovish market scenario, selling activity is slowly seeing exhaustion as visible from Bitcoin finding minor support at $3600 price level. As trading session progressed today, bitcoin saw sharp upward move in early hours which pushed the pair above $4000 mark and has displayed a steady consolidative move since then. As of writing this article, BTCUSD pair is trading at $4058.5 up by 9.69% on the day. Another reason for positive price action in legacy crypto currencies could be due to latest ranking published by China’s CCID which saw bitcoin move up by one rank despite recent decline in market value.

Bulls Unlikely To Establish Long Term Upward Price Action Due to Lack of Fundamental Support

While it would be the perfect shot in the arm if bulls find a way and bounce above $5,000, market analysts are shying away from bullish comments as many it current situation lacks a trigger for bitcoin to regain bullish price action and there is no fundamental support for bitcoin either which would mean that any upside move is likely to be short lived as price always returns to starting point when there is lack of solid support to influence stability. The current scenario can be viewed as situation where the bubble has burst similar to occurrence in stock market in early 2000’s and with many players closing shop owing to lack of finance and resource, the market now runs on loyalists and enthusiasts who believe in long term growth of crypto currencies as financial instruments and large scale private and institutional investors who are also interested in possibility of gains from long run.

Institutional approach towards crypto and blockchain technology continue to rise and many government and government dependent organization are also opening up to possibility of using crypto currency as form of payment which solidifies the position of crypto currencies as acceptable financial instruments. Investors now believe that this is next stage of consolidative move for bitcoin similar to how price action was relatively stable in $6000 zone with only difference being price now locked inside the zone of $3000-$5000 handle.  Any spike in value of Bitcoin, which is widely considered as progenitor of crypto currency is usually reflected in legacy altcoins. Ethereum being the most widely used crypto currency in terms of practical application in day to day activities, usually mirrors Bitcoin’s price action and is currently trading at 114.63 up by 9% on the day.