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Bitcoin And Ethereum Daily Price Forecast – Crypto Market Consolidates Weekend Gains

By:
Colin First
Updated: Apr 1, 2019, 11:42 UTC

Multiple fundamental factors support cryptocurrency bulls helping them scale key resistance handles over the weekend albeit bears aiming to drag major cryptos back towards previous week lows.

Ripple, Dash coin, Bitcoin, Monero and Ethereum

Cryptocurrency market over the weekend saw a positive price in both Bitcoin and major legacy cryptocurrencies. Last Friday, the crypto market saw bulls push through a critical resistance handle. Following the upward breach in price action, Bitcoin and legacy crypto coins had entered a consolidative price action. The weekend saw bulls push forward with further upside move as both Bitcoin and legacy crypto coins have managed to breach multiple critical support levels over the weekend. While analysts expected price action to take a hit towards month end owing to news of CBOE closing its Bitcoin futures at the end of March, the expectations failed to materialize in the market. While CBOE has not completely left the cryptocurrency market, they have decided not to renew Bitcoin futures after March and will close shop for Bitcoin futures when the last contract expires in June.

Consecutive Months of Positive Closing Underpins Crypto Bulls

CBOE has stated decreased demand for BTC futures as the reason for closure but is still on the race for ETF approval with SEC. In case, the proposal submitted by CBOE is approved by May and there is an increase in demand once again, chances are CBOE may choose to renew Bitcoin futures and this has resulted in investors failing to react with a sharp dovish move towards the update. Over the weekend, bitcoin saw price move above $4100 handle and aim to test $4150 which but hit resistance at $4147 handle and has since traded range bound above $4100 handle. Meanwhile, Ethereum saw price breach $140 & $145 handles during the weekend but strong resistance above $145 handle resulted in pair declining below said price level post which it has traded range bound above $140 handle. Having managed to test multiple key resistance levels, crypto bulls are currently consolidating their hold over weekend gains before preparing to move for a further upside move.

Moving forward, the path with least resistance seems to be on the upside as bulls receive fundamental support from headlines influenced investor sentiment. Bitcoin has managed to close positive for the second consecutive month and current price action indicates that Bitcoin seems to have found short term support above $4ooo mark and this has been highly welcomed by investors across the globe. News that Japanese crypto exchange Coincheck has launched Bitcoin OTC Trading Desk for institutional investors today also added strength to bulls in the short term. Post-consolidation of weekend gains, Bitcoin needs to scale $1450 handle while ETH needs to scale $145 handle for continued gains to the upside on a fast-moving pace. A decline below $4100 handle for Bitcoin and $140 handle for Ethereum will lead to bearish price action with both cryptocurrency pairs losing all gains made over the course of last week. However, a move between above-mentioned price levels will result in continued rangebound price action in immediate and near future trading sessions.

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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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