Bitcoin Price Forecast – Consolidation to Continue

Bitcoin prices continued to consolidate within a $200 range but at the same time , it did bounce off from the place where we had mentioned yesterday. It is to the credit of the volatility in this instrument that even during times of consolidation and ranging, the prices move by over $200 within a day. Other instruments would not be a patch on bitcoin as far as volatility is concerned and as we had mentioned earlier, this is where the opportunity and the risk lies as well.

Over the last few days, the flash crash in the ethereum market has just shown all about the dangers that are involved in a developing market which is the cyptocurrency market. There are no tight controls in this market and there arent any centralised exchanges as well. Also, many people and investors still do not understand what exactly all this means and they view this as an opportunity to make some quick money. This is the general tendency for any new market and thats what we are seeing here as well.

Yesterday, we saw the bitcoin prices move towards the $2600 mark and we had mentioned at that point of time that this is a flag like formation which is likely to only break higher and we are now above $2700 as of this writing. The bullishness is likely to continue in the bitcoin prices but as we approach the weekend, we can expect the prices and the volatility to be more subdued.

Forecast

Looking ahead, we expect the bitcoin prices to continue to consolidate between $2600 and $2800 in the short term. This is mainly due to the lack of news from any part of the world and it has to be noted that the steadiness in the dollar prices has also led to this consolidation phase. The bullish trend continues to exist in the background and this should keep the buyers happy.

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