Bitcoin And Ethereum Daily Price Forecast -Crypto Market To Trade Positive on News Driven Momentum

Bitcoin trades in green despite profit booking activity erasing most of weekend gains as news driven momentum helped BTC/USD find stable support above $4000 mark.
Colin First

The Cryptoscape is seeing mixed picture today with Bitcoin, Ethereum & several other major coins trading in Green while the others traded in red. The first week of January 2019 was definitely positive for crypto market as both Bitcoin & Ethereum saw solid change in price action with bullish bias primarily ruling the price momentum. Having found a stable support at $3500 handle, bitcoin is now trying to reclaim solid ground above $4000 mark. Last week saw bitcoin climb as high as $3989 but the run proved to be another dead cat bounce as pair fell back to mid-$3000 handle. But the forefather of cryptocurrencies managed to close positive for the week as BTC/USD pair breached $4000 mark and hit an intra-day high of $4145.16 near end of day and opened for second week above $4100 mark post which Asian session saw consolidative price action. The bullish influence on Bitcoin’s price action received some support from news which hinted at Japanese finance regulator considering approval for Bitcoin ETF to be traded in Domestic market.

Profit Booking Erased Most of Weekend Gains

This will out it at odds with US Regulator Securities and Exchange Commission (SEC) which has taken a risk averse standing on any finance instrument that deals with bitcoin and other crypto currencies. An approval by Japan’s regulatory authority Financial Services Agency (FSA) will greatly boost value of crypto currencies among institutional investors bringing in a fresh fund flow which could help Bitcoin reclaim $5000 mark with fundamental support. Crypto markets are also receiving positive support on news that UK based crypto currency exchange Coinfloor is offering future contract for Bitcoin, Ethereum & Bitcoin cash in name of CoinfloorEX/Coinflex. While there are already many crypto futures in market what makes this product truly special is the design to physically deliver actual crypto currency at delivery period instead of crediting cash in investor’s account.  However gains from early trading session were erased as profit booking activity caused significant downward price move.

As of writing this article, BTC/USD pair is trading at $4030.20 up by 5.14% on the day having recovered from intra-day lows of $3826.20 which suggests that news driven momentum provides fundamental support at $4000 handle atleast for near future. Meanwhile Ethereum remains the most profitable crypto currency in the market having reclaimed its place as second largest cryptocurrency in market. Similar to bitcoin, Ethereum also gained sharply over the weekend trying to reclaim weekly high’s moving as high as $163.11 post which ETH/USD pair was on consolidative price action in upper half of $150 handle in early trading hours today. However profit booking activity saw the pair fall as low as $149.55 post which it recovered significantly and is trading at $152.61. ETH/USD pair is expected to remain volatile ahead of much awaited Constantinople hard fork however the ongoing bullish sentiment surrounding Ethereum is expected to remain firm even post network upgrade.

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