Bitcoin suffered a sharp drop last week, along with most of the cryptocurrency industry, on account of the uncertainty surrounding the Bitcoin Cash hard fork. This has reminded market watchers that similar problems could also arise for other altcoins, particularly those dependent on the mining community and its consensus. Still, many are pointing to the relatively stable start to the week as a sign that bulls continue to defend the lows and might be enough to keep further declines in check.
Several analysts are still holding on to bullish forecasts for the year, although some have pointed out that it could now take months to undo the latest slide. BTC/USD had been consolidating for five consecutive days following a massive sell-off on the 14th of this month. However, today’s trading session saw the pair make a breakout to the downside following a relatively neutral opening.
BTC & ETH Hit New 2018 Lows
As of writing this article, BTC/USD pair slid to new 2018 lows and is trading at $5330.7 down by 4.36% on the day. The BTCUSD pair has formed bearish continuation flag in hourly intra-day charts indicating that the pair could see continues decline in near future. Immediate support for BTC lies around $4980 mark post which there is a high chance for the pair to go as low as $4200 handle in case of lack of volatility or recovery rally in near future. However, there is positive news in a market that could prevent continued downside movement and even inspire a recovery rally in days to come depending on how the market reacts to same as news hit the market that the main exchange in Switzerland gave the green lights for the world’s first Bitcoin ETF, Amun Crypto ETP.The Bitcoin ETF shall go live in the next few days and the official partners, Jane Street, and Flow Traders—market markets shall ensure there is enough liquidity once it rolls out. The market is also expected to see fund inflow from institutional investors in months to come as the crypto market continues to gain attention and with rates near one year low, it is a highly attractive investment option for huge investors. Similar to Bitcoin, ETH/USD pair also saw bearish breakout today and seems to be on a seventh consecutive session of losing streak as the pair fell to an intra-day low of $152.95 down by 12% on the day and is currently trading at $156.42 down by 10.82% on the day. As technical indicators now remain in oversold territory, investors await reversal indications as which will likely yield gains in several folds.