Bitcoin and Ethereum Price Forecast – Prices Correct As Traders Develop Cold Feet

We have now seen a correction in the prices of bitcoin and ethereum raising parallels to what we had seen at the beginning of the month. In the beginning of July, we saw that the bitcoin prices were at the highs of their range and were in a seemingly tearing hurry to break through the important $3000 barrier and move further higher. But then, the specs and the investors developed cold feet and this was followed by news and reports which seemed to suggest that the market was going to collapse.

Bitcoin Prices Correct As High Prices Cause Dizziness

This led to a period of large correction, even by the standards of bitcoin prices and we saw the prices fall by almost 30%. But over the last few days, the prices had begun to recover once again and this week, we saw the prices reach the highs of the range once again. Yesterday, we had asked our readers to be careful in this region as technically, this would have constituted a double top and hence prone to correction. And also, we felt that the market was just not ready to break through the $3000 barrier as yet.

And duly, the correction has followed and pushed the bitcoin prices to the $2500 region as of this writing. We might see some support coming in at this region and this is likely to lead to a period of consolidation and ranging. If the prices make a clean break through $2500, then look out for $2200 but for now, we believe that we are set for a range between $2500 and $2700.

The Ethereum prices have also followed suit over the last 24 hours and we have seen the prices correct from above $220 to below $200 as of this writing and this is set to continue in the short term. It has to be noted that, as the market is new, the size of the bounces and corrections are likely to be very large and very quick as well.

Forecast

Looking ahead, as we had mentioned, we expect the $2500 region to hold for some time and lend some support for the bitcoin prices in the short term which could mean that we are in for some ranging between $2500 and $2700. A break through $2500 would open up $2200. Ethereum is likely to find some support in the $190 region for the short term and we should see some consolidation and ranging with a bullish bias in this market as well.

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