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Bitcoin And Ethereum Daily Price Forecast – Volume Activity Indicates Increase in Demand For BTC Despite Fall in Value

By:
Colin First
Published: Dec 3, 2018, 10:35 UTC

Bitcoin Above $4000 as volume activity indicates support for the progenitor of crypto currencies ahead of debut of crypto 2.0 futures in NASDAQ

Bitcoin And Ethereum Daily Price Forecast – Volume Activity Indicates Increase in Demand For BTC Despite Fall in Value

The BTCUSD pair has been ranging above and below the $4,000 line for a few weeks now, after breaking a major support line at $6,500. The current market cap of Bitcoin is holding at $69.83 billion while the trading volume is at $5.17 billion. Bitcoin price has continued to correct lower despite the fact that there has been some positive news in the market. Nasdaq and VanEck-backed “crypto 2.0”, a crypto future plan was announced but Bitcoin has not been able to come out of the bear channel with resistance at $4,500 and support at $3,500. After days of higher highs which culminated with Bitcoin closing higher and unexpectedly fading gains of week ending Nov 25, gains of last week could be the much needed foundation and a sling that will catalyze gains back above$4,700 and eventually $6,000.

Crypto Currency Market To See Institutional Fund Flow As Crypto 2.0 Is Likely To Debut Soon

Going forward though, the increasing adoption level, the drop of prices and the consequent “wash” of speculators will be the perfect pad for large scale investors and institutional investors who expect to grace the crypto space in 2019 with their huge pockets of investments worth few millions to billions and such a move is expected by many analysts and crypto enthusiasts to stabilize the market. After last week’s bar, there is a reason for investors to smile. Not only did it end higher fading losses of week ending Nov 25 at six percent but there was a remarkable spike in market participation. Notice that last week’s volumes despite tight market range was almost twice the average at 304k versus 154k.

This means that BTC/USD is finding support despite plummeting prices and continued growth can be expected in days to come albeit in silent market action/very slow pace of growth. Ethereum, now the third largest coin with a market value of $11B and an average daily trading volume about $1.8B, is trading within a range limited by $110 on the downside and $120 on the upside. ETH/USD needs to return to the area above $120 to mitigate the bearish pressure, but this ultimate target is out of reach as long as the coin stays under $114.00 resistance.

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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