Bitcoin and Ethereum Price Forecast – BTC Prices Crash Lower

The BTC prices crashed lower during the course of the day yesterday and they now trade clearly below the $10000 region as of this writing. The weakness in the prices had set in a day or 2 back and hence it was only a matter of time before the move lower took place. We did see a bit of support in the $10400 region as was generally expected but that did not last long and the prices have now crashed lower and trade in the next support region around $9600 as of this writing. It was a large drop of over $1000 in the instrument during the last 24 hours and considering the lack of volatility that has been seen in the markets in recent times, it is indeed a large drop comparatively.

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BTC Prices Below $10,000

The reason for the drop, presumably, was due to reports that the Japanese authorities would look to crack the whip on some of the crypto exchanges operating there that did not conform with the standards. Japan is one of the main countries as far as crypto trading volume is concerned and it is also a place where crypto is recognised as legal tender and though this action is not surprising and is basically inline with what the regulators are supposed to do, the fact that this happened at a time when the market was already weak has made the fall larger. This has removed the confidence that has been building among the investors and it now remains to be seen how the BTC prices would recover.

The ETH prices have also dropped lower and they now trade below the $75 region as of this writing and the prices continue to look weak. It is not as though the ETH market needed any signal to fall further as it had been weak for quite sometime now.

Forecast

Looking ahead to the rest of the day, the BTC prices trade just above a strong support region and a clean break of the $9600 region is likely to lead to another fall towards the $9000 region in due course of time. The ETH prices are also expected to continue to trade in a weak manner.