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Bitcoin And Ethereum Daily Price Forecast – Legacy Crypto’s Trade Positive But Still Under Critical Resistsnace

By:
Colin First
Updated: Dec 17, 2018, 12:30 UTC

Bitcoin and Ethereum trade positive post hitting new 2018 lows and recovering over the weekend but upside move into positive zone remains capped owing to news of Hong Kong's regulatory crackdown.

Bitcoin And Ethereum Daily Price Forecast – Legacy Crypto’s Trade Positive But Still Under Critical Resistsnace

Many cryptocurrencies saw range-bound price action in early Asian market hours following reports that Hong Kong would tighten regulations on digital coins. Citing the Securities and Futures Commission’s guidelines, South China Morning Post (SCMP) reported that the regulator would soon require local investment funds to obtain a license if more than 10% of the assets they manage are made up of cryptocurrencies. The funds can only sell related products to professional investors, according to the report.

The regulator has been forced into action as concerns over fraud and money laundering continue to grow by the day and the regulation is expected to be implemented in stages according to the newspaper. Today’s market hours so far has seen legacy cryptos maintain stability in price action having recovered from recent lows.

This regulatory crackdown is expected to greatly impact cryptocurrency trading activity as a report from the Blockchain Transparency Institute suggest that fake trading makes up about 80% of the top 25 Bitcoin pairs by volume and such activities are likely to go down considerably owing to requirements of the SFC initiative which seem too burdensome for many operators. There was a decent bullish reaction from the $80 support in ETH price against the US Dollar.

The ETH/USD pair climbed above the $84, $85 and $86 resistance levels and even a spike above 100-hour simple moving average, however, buyers failed to hold gains and the price retreated from the $88 resistance area against the US Dollar. The pair must break the $87, $88 and $90 resistance levels to move into a positive zone. The ETH/USD pair is currently trading at $87.35 up by 0.56% on the day as of writing this article with support and resistance levels at $86/$85 on the downside and $88/$90 on the upside.

One year ago today the bitcoin price peaked at a little over $19,000, ending a year of bitcoin and cryptocurrency mania that saw billions of dollars poured into ambitious initial coin offerings (ICOs) and bold predictions that “this time it’s different”. Having declined sharply, Bitcoin is down nearly 83% since its all-time high. Bitcoin bulls and the crypto faithful have managed to remain upbeat in the face of market collapse patiently waiting for BTC to recover from a current bear market.

But fears around regulation and institutional investment mount fund flow limit recovery of many of much awaited high impact news such as a year-end spike in value, investor fund flow from huge organizations and investors, SEC approval of bitcoin futures etc., are still pending. BTCUSD is currently trading at 3297.9 up by 0.85% on the day.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

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