The prices have stalled near the $7400 region as expected
The BTC prices have rebounded as expected but they now seem to have hit a wall and again, this is something that we have been forecasting. The region around $7400 was a strong support and the break through this region had led the prices to slide towards the lows of the range below $7000. Now the prices are back in this region but have been finding it difficult to get a way through this region due to the strong selling that we have been seeing. The prices are likely to continue to face some strong resistance for the time being and this is going to be the biggest challenge for the bulls in the short term.
The bulls need to show purpose and momentum and prove to the rest of the market that the momentum is on their side for them to get convinced and join them. Else, it is likely that the BTC market would be hit with a lot of selling in the short term which would then push the prices lower. If and when the bulls do manage to break through, more traders are likely to join their side and this snowballing effect would help to make the passage to the $7800 region smooth and quick as well. It remains to be seen whether they would be able to make the breakthrough today.
The ETH market has also been generally buoyant but it has also faced a strong wall of resistance n the $420 region which is likely to keep the prices contained for the short term. Their founder, Buterin, has suggested for a cap on the size but it remains to be seen whether that would come to fruition.
Looking ahead to the rest of the day, we believe that the bulls would continue to batter at the resistance in the hope of breaking through. They need to make a quick job of it else the traders would get tired and would start reversing and then this would add pressure on the prices of both BTC and ETH as well.