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Bitcoin And Ethereum Daily Price Forecast – Weak Recovery Indicates Further Downtrend Play Likely In Near Future

Colin First
Updated

Bitcoin enjoyed a recovery of sorts during the weekend, reaching $3,600, but it began a gradual decline from that point onwards. The failure to stage a meaningful recovery is not a good sign. As the dust settles, that recovery looks like yet another dead-cat bounce. By the end of the week, Bitcoin dipped to new lows. Bitcoin attracted everyone’s attention towards the end of the year as the asset continued to see fund flow from investors despite multiple attempts that saw the pair hit new 2018 lows as experts and top analysts predicted that Bitcoin will recover to new all-time highs. However Instead of a recovery, the asset continues to head for the rocks pulling the entire market with it.

Bitcoin is giving a blind eye to the current oversold level

Bitcoin is giving a blind eye to the current oversold level which saw the BTCUSD pair fall to 15-month lows. This has squashed the hopes of many investors who believed that there will be a recovery towards the end of 2018. Besides, the Christmas break is around the corner and not much is expected to change in the coming few weeks. The main bearish driver is something that is not happening – a Bitcoin ETF. The latest delay by the SEC dealt a blow to all cryptocurrencies. The high-profile SolidX / Van Eck application has been pushed back to February. Bitcoin is currently dancing within a narrow range in the wake of the big waterfall drop. It tested the monthly lows around $3,200. A move that was ignited after BTC/USD was rejected at $3,400 handle which is considered as critical resistance zone.

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The asset is also exchanging hands below the hourly range moving averages while investors continue to argue if the pair has found bottom at $3000 or will continue to decline towards $2500 as 2018 comes to close. Ethereum price declined further below key supports against the US Dollar and bitcoin. ETH/USD could accelerate losses if there is a break below $80. Ethereum was previously consolidating inside a symmetrical triangle pattern and has broken below support to signal that further declines are in the works. Price could be due for a quick pullback to support before heading further south. The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse.

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This article was originally posted on FX Empire

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