Bitcoin and Ethereum Price Forecast – Not Much Effect Seen from the Fork

So, we are on August 1 and the bitcoin world has not ended, as yet. After all the confusion and uncertainty surrounding the fork, we are here on August 1 and we see that there has not been much happening in the bitcoin world. In fact, we had mentioned some kind of a relief rally that is likely to take place in the bitcoin prices if the fork does not cause the required impact and that is what we are seeing now. The prices have broken through the $2700 region and trade around the $2800 region as of this writing.

Bitcoin Traders Heave Sigh of Relief

The $3000 region has been acting as the cap over the last several weeks and it continues to do so now as well. The prices have been pretty much consolidating over the last many weeks and as we had mentioned many times before, the consolidation in the bitcoin prices is not something for the faint hearted. Even a period of consolidation leads to a move of 2-3% in the prices and that is why it is difficult for some long term traders to digest these kinds of movements. But this is a dream come true as far as the smaller day traders are concerned as they can make full use of the volatility as long as they want to.

Also, with the number of bitcoins pretty much limited, the main direction is always up and that is a kind of reassurance that the speculators can take when they enter into trades. This is how any new market is likely to operate as long as the liquidity is quite less but as the market begins to mature, the moves are likely to become more restricted and the traders wouldnt be able to see so much volatility at that time.

The ethereum prices also moved higher, basically piggy backing on the bullishness in the bitcoin prices. The prices moved through the $200 region and trades comfortably above that as of this writing.

Forecast

Looking ahead to the rest of the day, we can expect the consolidation and ranging to continue in the bitcoin and ethereum prices. The bitcoin traders would be able to heave a sigh of relief and hence we might see some bullishness in the bitcoin prices but the key would continue to be the $3000 region which should act as the cap. As far as the ethereum prices are concerned, we should see the consolidation continue between the $190 and $220 price regions in the short term.

Get Into Bitcoin Trading Today