Bitcoin and Ethereum Price Forecast – Prices Crash as China Bans ICOs

We had mentioned in our news section yesterday that the regulatory authorities in China have banned ICOs and this has led to a huge drop in almost all cryptocurrencies and being the flag bearer of this market, the bitcoin and the ethereum market have also been badly hit over the last 24 hours. The bitcoin prices have dropped by around 25% and are now trading just above the $4100 region after having bounced off the $4000 region.

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Bitcoin Prices Crash by 25%

China had been the source of many ICOs which had kept this market thriving. We also saw many Chinese investors funding ICOs not only within China but those ICOs from outside China as well but with the Chinese authorities now banning any investments in ICOs and asking the ICO owners to return back the funds, we are likely to see some turbulent times in the markets in the short term. The investors would look to sell of their ICOs or maybe convert them into other currencies and this is likely to keep the bitcoin prices under pressure.

The ethereum market has also been suffering and from the highs around $400,we are now seeing the ETH prices trading below the $300 mark and looking very weak. Ethereum had been the backbone of many ICOs and the fact that it has been banned in one of the biggest markets is likely to keep the ETH prices under pressure. On the other hand, it could bring in some regulation and sanity into these markets which will then thrive and mature in the long term. We will have to wait and see.

Forecast

As for the short term, it is better to wait and watch and those who want to take that risk, they can look at their charts and plot the areas of strong support and buy BTC and ETH off those areas. For BTC, the areas of support are $4000 and then $3600. While for ETH, the likely areas of support are $275 and then $225.

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