Bitcoin and Ethereum Price Forecast – BTC & ETH Move Downtrend Over Influence From Gain Trimming Acitivties

The Crypto market continues to move downward as a whole. This scenario of weakness will extend over the next few days. If volatility does not increase in near future, there is high chance for significant dovish price action in key crypto currencies. In recent past many countries established specific taxes on Crypto currencies operations with most recent being France, which has created a tax rate of 30%. While there hasn’t been any immediate reaction or major impact on crypto market over this news, analyst believe the influence of this decision is slowly trickling into crypto market and clear impact of same should be visible in price action of major crypto pairs such as ethereum and bitcoin by end of this month. Bitcoin retreats into the former resistance range quashing investor excitement. Investors are expecting Bitcoin to grind higher as the end-year approaches.

Bitcoin Unlikely To Go Below $6000 Market before Year End

But in immediate market, the ongoing gain trimming activity from retail investors has resulted in a bearish phase with pair breaking below the trend line support at $6,458.80 and hit an intra-day low at $6375.77 mark earlier today. As of writing this article the pair has managed to rebound from daily lows and is trading near $6400 market at $6398.59 up down by 1.69% on the day. If price action continues at current pace there is very low probability for the pair to see considerable gains by end of year. However Investors are expected to invest in Bitcoin in hopes of move higher as the end-year approaches which should keep the loss capped above $6000 handle and provide a small chance for pair to breach $7000 market before New Year.

The ETH/USD chart in the weekly range indicates that prices will tend to rise in the medium term. In the short-term, there is chance for strong downward rejection movements due to lack of liquidity which has caused many small time investors and retail traders to pull out funds from major crypto pairs. As of writing this article, ETH/USD pair is trading at $210.69 down by 2.18% on the day as news hit market that US Securities and Exchange Commission arrested Zachary Coburn, the founder of crypto token trading platform EtherDelta on charge of running an unregistered securities exchange that allowed users to trade Ethereum-based tokens without registering accounts.