Yahoo Finance Bitcoin and Ethereum Price Forecast – Major Altcoins Trade Flat Post FUD Inspired Sell-Off
Bitcoin and other major altcoins yesterday saw a sharp fall in value with decline over the last 24 hours reaching above 12% on the day. The BTCUSD pair has remained relatively flat following the sharp decline and is trading well near the session lows. While analysts are divided over what caused the decline and no clear reasons has been said out loud, the general belief is that the sharp fall in top crypto coins were triggered following meltdown initiated in Bitcoin. And the fall in bitcoin is believed to be result of a combination of technical factors intensified by (FUD) Fear, Uncertainty, and Doubt. While the BTCUSD pair is trading at $5499.2 well above intra-day low, the pair fell even below yesterday’s low and touched new 2018 lows today $410.22 before trading at current levels.
Long Term Outlook Remains Rosy As Large Investors Continue To Await Year End Bullish Spike & Altcoins Are Likely To Move Back Up Following Sharp Sell-Off
Bitcoin futures on CME reached a trading limit, tumbling down 13% on Wednesday. CME’s spokesman explained that the 2-minute pause was initiated before 2 p.m. Eastern Time. A 20% collapse would have led to a hard limit, however, it did not happen. Mati Greenspan, a senior market analyst at eToro commented “as bitcoin’s price falls below $6,000 we’re seeing liquidation: stop-loss orders automatically going into effect and/or people trying to play the breakout” caused the sharp fall. A similar scenario has mirrored across all major altcoins. There are some investors who believe that the sharp fall in value was result of panic caused by news of Craig Wright’s (who claims to be part of team satoshi nakamoto) tweet in which he threatened to drive price of Bitcoin down to $1000.
For now the pair needs to reclaim its positive back above $6000 handle in order to alleviate bearish pressure but price action indicates no such action has taken place so far. As mentioned earlier the sharp fall and a following range bound price action similar to bitcoin is mirrored in ethereum with ETHUSD moving well near daily lows as there are no signs of pick up in momentum . The fall in ethereum could be viewed as market wide panic triggered over the sharp decline in most popular altcoins – Bitcoin, which along with other major altcoins saw sharp decline in value. But a critical look at price action and historical price movement paints a rosy picture in long term as Prices will most likely recovery and print higher in the next few months.
This article was originally posted on FX Empire
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