Bitcoin And Ethereum Daily Price Forecast – Market Shows Signs of Bearish Decline

Cryptocurrency market shows signs of exhaustion in ongoing rally as news-driven momentum fails to sustain price action above critical price levels.
Colin First
Bitcoin 1

Crypto currency market finally showed signs of exhaustion after trading positive for nearly six consecutive trading sessions. While price action still remains well near weekly highs, five out of top 10 major crypto currencies today saw significant downside move compared to weekly highs hit over the weekend. Given the fact that crypto bulls lack fundamental support to sustain positive price rally in the broad market, news-driven momentum has helped crypto bulls sustain positive price action so far but most of the news was purely speculation and nothing ever saw positive progress which lead to a scenario that is clearly lacking strong fundamental support.

Bitcoin Likely To Be First Digital Coin To Fall Sharply

Given the lack of fundamental support, Bitcoin has been steadily declining from weekly highs and fell below $3600 handle earlier today. This gradual decline is a clear sign that bears are slowly but steadily taking control of the price action of major cryptocurrencies in the broad market.  While the market is yet to see a sharp fall, the bearish decline is impending and once Bitcoin falls below $3500 handle, the market is likely to see investors start booking profits as the handle serves as critical support below which sharp decline is highly likely. Once investors begin booking profits sentiment-driven rally is likely to come to an end.

Profit booking activities post such rallies usually see sharp declines as investors trim profit to the max resulting in price hitting rock bottom. As of writing this article, BTC/USD pair is trading at $3610 down by 0.14% on the day while ETH/USD pair is trading at $122.17 up by 0.46% on the day. While bitcoin traded rangebound with a slight bearish bias, Ethereum continues to trade with clear bullish bias well above $120 handle as investor sentiment surrounding the pair improved on the news about Constantinople upgrade being preponed. However, Bitcoin and Ethereum are expected to continue trading positive for rest of today’s trading session given the fact that price is well above critical price levels.

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