Bitcoin And Ethereum Price Forecast – Downside Move Likely As Market Has Gained Bearish FundamentalsEvent-driven influence has created a bearish fundamental environment in a market that lacked fundamental support and directional bias for quite some time resulting in downside price breakout.
Cryptocurrency market has entered into yet another bearish price action phase today. While there have been several other major declines earlier this month, today’s decline will have higher significance when looked from a long term standpoint. The reason the latest decline is special is simply because Bitcoin has breached one of the most critical support price levels which investor are currently on the lookout for- for the first time since the trading session began in 2019. Meanwhile, Ethereum similar to Bitcoin saw a sharp price decline however managed to hold for about critical support level. The move by Bitcoin – progenitor of cryptocurrencies is viewed by many as a sign of bearish unrest that is set to follow in the crypto market in near future. Bitcoin/US Dollar today fell below the critical support level of $3500 which is widely viewed by investors as the first price level with strong supply needed to be breached in order to maintain bullish price action.
Ethereum Above Critical Level Despite Sharp Declines
While Bitcoin saw multiple sharp falls earlier this month, it managed to hold its fort above critical price level which caused investors to believe that it could be a sign of consolidation in the market. Despite price action remaining locked inside a wider range owing to lack of fundamental support, investors believed that headlines pertaining to much-awaited crypto events would lively provide some kind of bullish trigger and act as a fundamental support to push Bitcoin and other major legacy cryptos on a solid bull run. However, the market saw back to back misses in all key events which were highly anticipated in the market. Some of the major events which went amiss are CBOE’s withdrawal of ETF application owing to partial US government shutdown as SEC didn’t have staff members needed to work on approval process with deadline nearby and another delay in Bakkt platform and it’s Bitcoin futures which is also pending owing to SEC approval.
Similarly, Ethereum’s much-awaited Constantinople hard fork which also got postponed owing to the last-minute discovery of security issues also added to bearish pressure in the market. All these factors piled up more bearish pressure in a market which was clearly lacking direction bias and fundamental support resulting in market gaining a bearish breakout. The scenario now is one that exerts a high amount of bearish pressure while there is clear lack of positive fundamentals and headlines which suggests the overall market is likely to turn dovish soon and Ethereum is also likely to fall below critical support price level if the situation continues to worsen at the current pace. As of writing this article, BTC/USD pair is trading at $3448.7 down by 3.4% on the day while ETH/USD is trading at $103.46 down by 9.65% having hit an intra-day low of $101.94 earlier in the day.