Bitcoin and Ethereum Price Forecast – Prices Consolidate as Market Settles

Both bitcoin and ethereum prices continued to consolidate over the last 24 hours, as we had mentioned in our forecasts. The bitcoin prices are back to doing what they do best, which is to stay volatile and they have shown some good volatility since yesterday. They went ahead and pushed forward towards the $2400 mark, as we had suggested, then corrected back towards the support region at $2200 and now have since bounced and trading just above $2300 as of this writing.

Prices Likely to Remain Volatile But With Range

These 2 instruments have shown some good resilience over the last few days and have managed to stage a smart recovery despite having been pounded a few days back. During that period, a sense of panic had set into the markets and small traders and investors were pulling out their funds very quickly. We had said that this was a good test for the markets and the strength and the maturity of the market would depend on how well it recovers from this weakness and considering the price recovery over the last few days, it has to be said that the market is fast maturing and attracting some big investors and funds who are likely to buy during such corrective periods.

Still, a large part of the markets continue to stay in denial but it has to be agreed that the market has some way to go before it becomes fully mature. We are seeing many ICOs being announced on almost a daily basis and some of these ICOs are tuned towards quickly collecting some funds and making hay when the sun shines. This is leading to a kind of bubble which will soon burst and the way the market emerges and stabilises after that would be the key.

Forecast

Looking ahead to the next 24 hours, we believe the support and resistance regions for the short term have been well defined by the movements in the bitcoin and ethereum prices yesterday. For ethereum, the range is between $240 and $200 and we should see some good action within the range while it is between $2200 and $2400 for bitcoin. A break on either side should lead to a larger move in that direction.

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