Bitcoin and Ethereum Price Forecast – Bitcoin Awaits Next Direction As ETH Consolidates
As expected, after making a corrective move towards $3800, the bitcoin prices have since shot up higher during the course of the last 24 hours and we have had a test of the highs around the $4400 region during this morning which has basically formed a double top, technically, as of now. But considering the fact that the bitcoin prices are in a tearing hurry to move higher, we do not attach much importance to this double top as of now and it would need several tests of the range highs to hold before we start giving importance to this region.
Bitcoin Prices Form Double Top
Now we are back into a support region and we are biding our time as the prices decide which way it wants to go in the short term. The fact that the bitcoin market is attracting more and more traders and investors, especially with the prices on a one way journey, is something that is clear for everyone to see but it remains to be seen how far is actually very far. As we had mentioned, the region between $4400 and $4500 is likely to lend a bit of resistance to the move of the prices higher but how long it will hold is something that remains to be seen. For the short term, we expect the consolidation to continue but if we have a breakout at the top, then we could easily move $200 to $300 in a matter of a few hours.
The attention of the market seems to be alternating between the bitcoin and ethereum markets as if there is consolidation in one market, the other market moves higher and vice versa. With some consolidation setting in the bitcoin market over the last 24 hours, we have seen the ETH prices move higher and they now trade in the $300 region and we expect the consolidation between $280 and $320 to continue in the short term.
Forecast
Looking ahead to the rest of the day, as mentioned above, we should see some amount of ranging in both the markets and we would also need to watch the development in the other markets as well to see what kind of an effect the other markets have on the prices of bitcoin and eth. For now, we can wait for a correction of a breakout in the bitcoin prices before going long while we trade the range in ETH.
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This article was originally posted on FX Empire
