Bitcoin And Ethereum Daily Price Forecast- Consolidative Action To Continue in Immediate Future

Bitcoin and other major cryptocurrency pairs have so far this week exhibited consolidative price action locked inside a relatively small price range. The price action is expected to continue as such across the day and for rest of the weekend as market lacks any kind of fundamental and news based trigger to push price action on either side of the price range. Given the fact that cryptocurrencies are the only instrument that lacks an external governing body and a single economy based backing like fiat currencies, the price action in the broad market is purely dependent on news based momentum and investor sentiment based price action. This is clearly evident from monumental rise and fall of crypto assets over the last year.

Lack of News Results in Very Little Change in Price Action

The history of rise in major crypto assets can be clearly attributed to sudden fund flow in the market which was influenced by headlines and investor sentiment as analysts predicted great futures. Every tom, dick and harry suddenly became an expert in crypto all wanted to be part of the movement. But cautious once cashed in on gains and played safe, once market crashed from highs people left the market in flock taking with them huge chunks of profits from major cryptos. With most people who generated volume and volatility out from the market, those behind are mostly loyalists and huge investors with patience to wait out a prolonged rally. Investor sentiment remains dovish owing to fact that headlines don’t contain anything out of the ordinary either.

For the majority of the month, news mostly in circulation was various regulatory body conducting crackdowns, a hack in major exchange which resulted in a loss worth millions of dollars and few exchange/brokers offering OTC service. With none generating enough momentum to establish a rally, price action is range bound near critical levels. Bitcoin is trapped inside a range of $3500 to $3650 and is currently trading at $3587.5 up by 0.18% on the day. Meanwhile, Ethereum is trapped in a range of $115 to $118 and is currently trading at $116.42 down by 0.31% on the day. Further headlines hit the market that volatility in Bitcoin is hitting new lows suggesting that crypto market is seeing very little action. This is another factor that could add to dovish sentiment as most traders prefer avoiding assets with little liquidity and volume in the broad market.