Bitcoin and Ethereum Price Forecast – Bitcoin Prices Consolidate at Highs

Colin First

Updated Sun, Jul 23, 2017, 10:24 PM

The bitcoin prices are back where they were at the beginning of the month and as expected, they have begun to chop around. This is likely to last for some time, as was the case last time as well. One of the main reasons for this chopping around is the fact that it is very close to the highs of its range and also near the crucial round figure mark of $3000 and this brings in a lot of uncertainty and doubts into the minds of investors and traders who are not sure whether they would like to buy and invest in bitcoins at this price.

Bitcoin Buyers Need to Believe

That is the reason why we don’t see any major purchase of bitcoins at these highs and at the same time, those who have already bought bitcoins are waiting for even higher prices and that is why we don’t see much selling as well and hence the chopping around of the prices. This is likely to last for sometime until the traders make up their mind on whether they would want to sell or buy.

To us, the price action ever since the beginning of the month has pointed to the fact that the prices reached the highs of its range, and this brought in some apprehension on the part of new buyers and the old buyers also sought to take off some profits. This led to a correction in prices and this snowballed into a larger correction as some of the buyers panicked and began to sell off. Now that the correction is over, we are seeing more and more buyers coming in and the bitcoin prices have started to move up once again.

Ethereum prices are also in a consolidation mode with not much of action over the weekend. The ICOs also seem to have taken a break for now and that is also one of the reasons why the liquidity has been low and there has been consolidation and ranging in the prices which continue to be healthy.

Forecast

Looking ahead to the rest of the day, we expect the bitcoin and the ethereum prices to continue to consolidate and range as the traders come to terms with the new prices and begin to accept the fact that these prices are going to be the norm going forward and once they begin to accept that fact, it becomes easier for them to start buying BTC and ETH once again.

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This article was originally posted on FX Empire