Bitcoin And Ethereum Price Forecast – Lack of Fundamental Support To Result in Further Decline For Major Cryptos

Despite short news driven momentum every now and then, clear lack of fundamental support has resulted in multiple dead cat bounces with more downside price action likely in near future.
Colin First
Ethereum

Having run its course, the recent recovery rally in crypto market has come to end and major cryptocurrencies have now erased all most all gains made from early week while a few have even fallen back to monthly lows. Lack of fundamental support remains one of the major factors that has affected and continues to affect price action of major crypto coins in last few months. While news driven momentum helps Altcoins from time to time any such rally has so far turned out to be dead cat bounce. While crypto market saw all major Altcoins and Bitcoin lose nearly 10% since yesterday with market losing over $100 billion in value, news of Bitwise reaching out to SEC for approval of Bitcoin ETF to be traded in NYSE Arca provided some cushioning effect.

News of Bitwise’s ETF Approval Request To SEC Cushions Downside Price Action

According to latest tweet in Bitwise’s official twitter account, the cryptocurrency Asset Management firm has filed an initial registration statement to US Securities and Exchange Commission (SEC) for ETF to be traded in NYSE Arca and they are hopeful that the request will be approved as they believe that unlike other ETF’s which have come in front of SEC, they are special owing to regulated third party custodians who will hold their physical Bitcoin. It remains to be seen if this change will have any impact on SEC’s standing over approval of Bitcoin ETF’s and while the approval is highly unlikely it has helped major Crypto’s find some support on their downside price action.

Since the tweet hit the market yesterday, Bitcoin has traded in relatively range bound fashion. A look at hourly chart shows that Bitcoin has remained stable near $3600 handle and traded in relatively neutral pace across Asian and European market hours. Unless the key support of $3500 mark is breached Bitcoin will continue to move in range bound fashion but a break below said level will leave the BTC/USD pair vulnerable to sharp fall till $2700 to $2400 price range. Meanwhile, investor’s caution ahead of next week’s Ethereum updates also limits trading volume in crypto market significantly. Ethereum has breached another psychological support at $130 handle and is on slow downside price action. Limited trading volume and continued profit booking could lead the pair to test support level of $100 by weekend if the ETH/USD pair continues losing ground at current pace. A lack of news to push the altcoins higher amid prevalent market scenario will likely result in further decline of bitcoin and other major crypto currencies over the weekend.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US