Bitcoin and Ethereum Price Forecast – Prices Correct Lower

The BTC prices have undergone another round of correction over the last 24 hours and this basically reverses all the gains that it had made over the weekend. This points to further choppiness ahead in the markets which is likely to keep the traders on their toes. With the introduction of the bitcoin futures at some major exchanges, the liquidity and the volatility has changed and this has in turn affected the price action. We do not see the major rise and falls that we used to see. Just a couple of months back, 10% change in the prices was common place but that is no longer the case. Though this is good for the large investors as it helps them to invest with a sense of assurance, this has driven off the speculators who are looking for some quick profits with low risks.

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BTC Prices Below $11,000

This is the reason why the action has slowed down in the BTC markets over the last couple of months and this is likely to continue to be so. With us approaching the end of the month, we are also seeing flows and expiries associated with month end and this is also likely to bring in a lot of action in the market and along with it, we are also seeing a lot of choppiness as well. This is likely to last for the short term as the market and the traders search for direction. We can expect the $10,000 region to act as good support for the short and medium term with the $12,000 region capping the prices for now, as was seen over the weekend.

The ETH markets have also corrected lower over the past couple of days but the correction in these markets are lesser as compared to the BTC markets and that is why we have been able to see the ETH bulls being able to hold on to some of the gains that they have made over the weekend, atleast so far. Once the period of correction and consolidation is over, we should see the prices rise again in the short and medium term.

Forecast

Looking ahead to the rest of the day, we do not have any major fundamentals to affect the prices for now. With the Asian session, which holds a large say in the trading volumes and prices, also almost out of the way, we should see the prices stabilise for the rest of the day.