Bitcoin And Ethereum Daily Price Forecast – Bulls Are Not Ready To Surrender Yet

The cryptocurrency market seems to have hit a lucky spin as repeated attempts by bears to take over control of price momentum has ended in dead cat bound attempts. The first attempt was made early last week ahead of Constantinople hard fork as investors wanted to wait till after successful completion of Ethereum network upgrade and wait for last second until when the price momentum breaks to the downside so at the book maximum profits from the rally when there is a breakout. And while the market did see a bearish breakout as expected the decline was not as deep and sharp and instant as it was expected to be. Instead, the decline occurred in stages and each fundamental support price levels seem to have more supply when compared to the volume at respective support handles during previous declines when the price fell sharply. The price action in the cryptocurrency market is currently influenced by investor sentiment.

Rebound Price Action Brings in Fund Flow With Billions into Market

While news driven momentum popped up here and there in recent past, it is unlikely for any such news to turn as fundamental support in the near future as the news never saw follow through in the actual market resulting in news reports being nothing more than speculation. Owing to strong supply near critical support levels, following yesterday’s sharp decline, bitcoin and other major legacy crypto coins entered consolidative price action early in the day. As volume data suggests support price levels have strong supply, investors and analysts interpret the scenario as bulls resistance to yields to bears attempts at gaining control over price action. The human mind is greedy in nature and given current scenario where every player wants to make most of the ongoing rally, bullish bets entered the market and fund flow increased resulting in overall crypto market recovering more than $5 billion USD in trading session today and all major cryptocurrencies seeing significant upside move in rebound action. No trader is ready to lose out on gains and this has resulted in a battle of attrition that is keeping funds trapped in the market while strong psychological resistance limits further gains.

As of writing this article, BTC/USD pair and ETH/USD pair are trading at $3846.8 & $35.09 handles up by 3% & 6% respectively. There hasn’t been any major news today nor expectations of key events today or in the near future which supports the possibility that ongoing rally is in reality nothing more than battle of attrition and this has changed the price dynamics in the crypto currency market. In a battle of attrition, the last one standing wins and bulls doesn’t seem like giving up anytime soon. As all traders involved both retail investors and investors with large portfolios who could wait out any rally patiently aim to walk away with maximum gains, there is some level of trading volume and activity in the market that has struck for quite a while. Also, the multi-week long positive price run has finally started resulting in miners seeing some level of gains for the first time since the crypto market fell sharply to new 2018 lows. This suggests that price action in near future is likely to see range bound action with a positive bias but clearly not a scenario where cryptocurrency market has found the bottom. Unless the price of Bitcoin crosses $4000 mark and resumes a stable upside rally while other major legacy crypto coins also breaches & establishes a stable rally, cryptocurrency market still has the possibility for sharp declines regardless of how green the market paints itself in short to medium term outlook.