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Bitcoin And Ethereum Daily Price Forecast – Major Cryptos Consolidate Post Profit Booking Activity

By:
Colin First
Published: Feb 21, 2019, 16:18 UTC

Bitcoin and Ethereum see consolidative price action post profit booking activity but shows signs of decline.

Bitcoin And Ethereum Daily Price Forecast – Major Cryptos Consolidate Post Profit Booking Activity

Cryptocurrency market is once again trading in consolidative price action post positive start of the week. The pattern has been recurring in the market, a positive start followed by decline owing to profit booking activities post which crypto market sees major crypto coins recovering some of the losses incurred and moving onto a consolidative phase. While activity in the cryptocurrency trading market remains high, when looking from the perspective of market capital, there hasn’t been much of a change in value for bitcoin and other major legacy cryptocurrencies. A look at the intra-day chart shows corrective price rally in play for 8 out of top 10 crypto coins over the course of the last 24 hours.

Headlines Warn Traders of Impending Price Decline

As news hit the market recently that approval of Bitcoin ETF’s by SEC is unlikely to occur in near future as current proposals submitted to SEC still show vulnerability towards being manipulated, investors began booking profits.  The headline is viewed by investors as a warning for impending bearish activity in the crypto market. Owing to the decentralized nature of assets being traded in the crypto market, headlines and investor sentiment play a major role as fundamental factors that decide the outcome of a price rally. Currently, two Bitcoin ETF proposals are in the table of SEC but it looks like neither will receive the approval within the maximum time frame of 240 days by which the proposals have to be approved.

As of writing this article, BTCUSD pair is trading at $3934.4 down by 0.32% on the day, while ETHUSD pair is trading at $145.58 down by 0.70% on the day. The price action in the broad market is also seeing bitcoin and other major legacy crypto coins facing strong resistance near psychological price levels. The longer it takes to breach this price level, the probability of long term bullish price run goes down. Meanwhile, a look at market volume data in coinmarketcapital website shows a decrease in overall trading volume of bitcoin post profit booking activities. This implies that bears have begun to fight for control and bearish price rally is well within the horizon. However, given the fact that a significant portion of the trading volume is still intact, bitcoin and ethereum are likely to continue seeing positive price action for rest of the day and in immediate future.

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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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