We have been repeatedly mentioning in many of our recent forecasts that the BTC prices are stalling and with the introduction of the BTC futures at the various exchanges, it brings into a whole new dimension of trading into the bitcoin market. It has also led many of the speculators to think twice before investing into BTC and many of them seem to have migrated to the alt coins as is evident from the way that their prices have been rising in the recent weeks. As more evidence of the same, we saw the BTC prices crash by more than 15% from their highs over the last 24 hours and the volatility continues in the market as of this writing.
Prices Push Towards $17,000
The BTC prices trade just above tthe $17,000 region as of this writing and it is likely to remain under pressure in the short term. Though all of the factors above have contributed to the weakness in the BTC prices, the immediate trigger seems to be the new that the hard fork SegWit2X which had been dropped in November is likely to be revived and pushed through and this is likely to bring in a lot of uncertainty and confusion in the bitcoin industry once again. This is not liked by many of the traders and investors and they have begun to pull out of BTC and so far today, Bitcoin Cash seems to be the biggest beneficiary as it has been buoyed by news that it would be listed by Coinbase.
The ethereum market also seemed to bear the brunt of the fall in the BTC prices for sometime as it fell towards the $720 region but it has since managed to recover back and trades just below the $800 region as of this writing. We continue to believe that the ETH market has better fundamentals than most and hence believe in it for the medium term and the long term.
Looking ahead to the rest of the market, we expect the BTC prices to continue to be under pressure as more news comes out regarding the Segwit2X hard fork and traders should be careful not to jump into this kind of volatility. ETH seems to be a much better bet at this point of time and this should benefit the ETH market in the short term as we look for new all time highs from the ETH prices.