Bitcoin And Ethereum Daily Price Forecast – Profit Booking Activity Erased All Gains From Early This WeekProfit booking activities initiated downward price action but losses were capped owing to fundamental support in form of fund flow from institutional investors.
Bitcoin price struggled to break the $4,400-4,440 resistance and declined against the US Dollar. Yesterday, there was an upside extension above the $4,300 and $4,350 levels in bitcoin price against the US Dollar. The BTC/USD pair even broke the $4,400 high and traded to a new weekly high at $4,437. Later, there was downside correction and the price declined below the $4,300 and $4,250 support levels. More importantly, there was a break below yesterday’s bullish trend line with support at $4,220 on the hourly chart of the BTC/USD pair.
BTC Retests Important Support Level At $4000
The pair traded below the $4,100 level and it is currently trading at $4000.8 down by 8.89% as profit booking following recent upswing by retail traders who took up opportunity to reap gains while hawkish wind still remains in sail triggered a sharp selloff that has now left Bitcoin testing support at $4000 mark which if broken today will see the pair resume bearish price action and continued downward price move. Bitcoin has drawn support from the renewed focus on institutional investments, as many were relieved to find out that big companies are pushing through with their crypto plans despite the bear market.
For one, NASDAQ is gearing up to launch Bitcoin futures early next year as it works with VanEck to consolidate prices over multiple exchanges and aims to get CFTC approval as well. Meanwhile, Coinbase has reportedly launched an OTC platform for institutions to directly trade cryptocurrency between each other. This could support volumes and activity in the long run, which might keep prices afloat as well. Fund flow in crypto market is also serving as fundamental support for other legacy crypto’s aside from Bitcoin. However profit booking activity has resulted in all major crypto’s seeing significant downward price action today leaving week’s close in relatively neutral stance. ETHUSD pair also moved downtrend and is currently trading at $113.40 down by 6.83% on the day.