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Bitcoin and Ethereum Price Forecast – Bitcoin Prices Correct on Profit Taking

By:
Colin First
Updated: Aug 16, 2017, 07:22 UTC

Bitcoin prices corrected lower yesterday and it fell about $600 within a matter of 24 hours which is a correction of around 14% within that period. It is

Bitcoin

Bitcoin prices corrected lower yesterday and it fell about $600 within a matter of 24 hours which is a correction of around 14% within that period. It is a measure of the volatility in this instrument and it is also a measure of what kind of risk and reward is possible in this market which is still developing. In most of the normal currencies, this kind of 14% move in a specific direction would have destroyed the economy but the traders in the bitcoin market have begun to get used to such moves.

Bitcoin Prices Correct by 14%

With the bitcoin prices continuing to move higher and higher, the sizes of the moves also get correspondingly higher and this could be something that is hard to digest for traders who are used to less than 1% moves in the currency markets. in any case, the bitcoin prices move through the $4000 support region and fell as low as $3800 before recovering back during the course of the morning and now trades at the $4000 region.

Bitcoin 4H
Bitcoin 4H

There has been no fundamental reason for the correction though one of the reasons that could be attributed is the recovery in the stock markets which has been brought about due to the lowering of risks around the world. This led to the moving of funds, as part of profit taking, from the bitcoin market back into the stock markets. With the correction over, we are once again looking at higher prices in the bitcoin network in the short term.

With the correction in the bitcoin prices affecting the ethereum market as well, the ETH prices also broke through the support region at $290 and moved lower as it trades below $280 as of this writing. The ETH market has been quite silent over the last few days, with all the focus firmly on the bitcoin market and this could be used as an opportunity to load on the ETH longs for the next move higher.

Forecast

Looking ahead to the rest of the day, we expect the recovery in the bitcoin prices to continue and we should see some consolidation between the $3800 and $4400 regions for the short term. On the other hand, the ETH prices should consolidate between $270 and $290 in the short term which presents a consolidative picture for the cryptocurrency market.

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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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