The BTC prices have continued to fall over the last 24 hours and the prices have now lost touch with the support region around $6600 which means that their next likely stop is below the $6000 region. There cannot be any specific single reason that can be attributed to the fall in the prices and we believe that it is a combination of the market fundamentals, growing fear, bottom fishing, dollar strength and other factors that seem to be affecting the prices at this point of time. It is ironical that the market begins to fall in a period when the large funds are entering into the market.
BTC Prices Still Falling
We are hearing of news on a weekly basis of major banks and funds entering into the market in one way or the other but still we are finding that the prices are dropping. On the other hand, the prices were in a huge bullish run last year when only the small retail traders were there in the market. This leads to the suspicion that the large investors and funds might be bringing down the prices in the hope that they would be able to gain entry into the market at cheaper rates and this could be one of the major reasons why the prices are falling at this point of time.
The ETH prices have also lost touch with the $480 region and this is likely to spell even more trouble for the ETH market and we would not be surprised if the prices fall towards the $400 region in due course of time. This kind of downtrend if likely to last for the medium term and till the trend gets over, it would not be advisable for traders to think of longs in this market just yet.
Looking ahead to the rest of the day, we do not have any major fundamental events as yet but the weakness in the market is likely to persist and we do not see any rebound in the BTC market beyond the $6600 region just yet.