The Bitcoin prices continued to consolidate, as we had mentioned in our forecast, over the last 24 hours as the market awaits the news from China. It was the news about the ICO ban in China that had led to the large fall at the beginning of last week and now it is the turn of reports that say that China would be blocking the Bitcoin exchanges as well. So far, there has been no confirmation of this news though the reports have been spreading around in the media like wild fire. The Chinese regulators have been mum about it but the media has been going around saying that it is only a matter of time before that happens. The investors and the traders do not want to commit themselves before the dust settles down and that is why we are seeing this consolidation.
Bitcoin Prices Consolidate and Await News
But as the time goes on, the market is likely to get stronger and stronger and become more immune to any such shocks and even if the reports turn out to be true, we might see only a muted reaction as far as the bitcoin prices are concerned as part of the news is already priced into the markets. This is how the mature markets behave and as we have been saying, all these events would only help the market mature even more quickly. Of course, even a muted reaction in the Bitcoin market constitutes a 10% fall but this is something that we will have to wait and see.
The Ethereum market is also following the Bitcoin markets lower but it seems to be slightly on the better side as the focus is on the bitcoin and the bitcoin exchanges only, at this point in time. Of course, the market is new and hence highly interconnected and so we cannot think or evaluate one market alone without considering the other and that is why we are seeing the ETH prices also consolidate and wait for further direction.
Looking ahead to the rest of the day, the level of $4600 and $330 is likely to cap the prices for BTC and ETH respectively and we are likely to see some more consolidation and ranging for today as the markets and the traders await further news and direction.
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This article was originally posted on FX Empire
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