Bitcoin Price Forecast – Prices in Danger of Falling Off

Bitcoin prices have fallen hard but have since found some support once again in the $2400 region and this kind of corrective consolidation is likely to continue in the bitcoin prices for the short term. This is what we have been mentioning over the past week or so where we had said that the bitcoin prices are likely to have some sort of corrective consolidation between the $2400 and $2800 over the short term as the market spends some time in sorting itself out.

There does not seem to be anything fundamental to the correction but as we had mentioned before, we believe that the market is still coming to terms with the new high prices and the fact that the prices are close to the important psychological mark of $3000 is just putting off some investors and traders and making them very nervy as well.

Also, over the last couple of months, we have been seeing a lot of competition to the bitcoins which has also dampened the market for them. We have seen the emergence of many other cryptocurrencies and though they do not have as much liquidity or stability and a lot of things about these new currencies are still unknown, these have managed to take away some of the spotlight away from the bitcoins which have affected the demand.

Forecast

Technically, a look at the 4H charts shows that a head and shoulder pattern has formed with the lows coming in at the $2480 region and so this region should be key going forward in the short term. A break of this support could open up a move to $2200 pretty much very quickly and this is what the traders should be looking out for. Traders need to be on their toes as usual and this is always a very important character for those who want to succeed in bitcoin trading.

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