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Crypto market accumulates positive

Crypto market has finally descended into bearish price action following three consecutive weeks of positive price action. After more than three consecutive weeks of positive price action in the cryptocurrency market, bitcoin and other major crypto coins have finally started seeing a bearish decline. Positive investor sentiment supported by headlines driven price action underpinned crypto bulls in broad market in recent past. But last week saw headlines hit the market that suggested much-anticipated approval of major Bitcoin ETF and futures may be delayed even further as US SEC and CFTC still see possibilities for financial assets to be manipulated.

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Cautious Ahead of ETH Hard Fork Served as Bearish Trigger

While CBOE has stated that the resubmitted proposal has removed any change for price manipulation and vulnerabilities cited by SEC, investors have to wait till the end of the 45-day deadline to see if the asset will be approved or not. Meanwhile, investors are getting ready for Ethereum hard fork expected to take place this week. Cautious investor stance ahead of Ethereum Constantinople hard fork had resulted in crypto bulls losing hold over weekend’s gains. The weekend saw bulls manage to breach critical price levels once again but bulls lacked the strength to sustain rally resulting in sharp declines which were followed by some level of profit booking activity that led to additional downside move resulting in bears beginning to wage war for control. As of writing this article, BTC/USD pair is trading at $3810.1 down by 0.81% on the day while ETH/USD pair is trading at $135.76 down by 2.82% on the day.

For now, price still remains above critical support levels putting the pair well inside bulls territory in current and near future trading sessions. However, the decline has begun and market lacks fundamental support, trade volume and fund flow required to sustain the rally in current price levels which suggest that bitcoin and other major assets are likely to see sharp declines in near future. The week ahead is likely to see bears try to take control of price action but price level at which market manages to stop decline following ethereum network upgrade is likely to become new psychological support level above which the market is expected move range bound in the short-medium term time frame while traders await further headlines and events with equally significant impact on crypto market.

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