Bitcoin prices have been generally lower over the last 24 hours as the prices have reversed a move through the $6000 region and now trade above $5600 as of this writing. This weakness in the bitcoin prices along with consolidation is expected to continue in the short term but with the prices have already made a trip through the other side of $6000, it appears only to be a matter of time before the prices begin to make the next trip to that region. The current weakness in the bitcoin prices is attributed to the hard fork which is likely to happen in the short term which would produce a new cryptocurrency called bitcoin gold.
Bitcoin Prices Under Pressure from Fork
This is similar to the fork that happened in August which led to the birth of bitcoin cash and this fork is going to precede the SegWit2X fork that is scheduled to happen in November. So, along with these forks, there comes uncertainty in the markets as well and this is likely to make the traders and investors think twice before they set about buying more of bitcoin and this is one of the reasons for the fall in prices. The birth of bitcoin gold might lead some of the miners and investors away from the main bitcoin market and there is a general fear that this could then affect the demand for bitcoins.
The Ethereum market had continued to flounder for most of the day yesterday as it fell through the $280 region during the course of trading. This led to fears that the prices might be in for more correction in the short term but this morning, the ETH market seems to have found some new love as the prices have shot higher this morning through the $300 region and continue to trade above that as of this writing. Some of the uncertainty in the bitcoin market might be making the investors diversify their holdings and this is probably helping the ETH prices higher.
Looking ahead to the rest of the day, we can expect the consolidation in the bitcoin market to continue with a bearish bias for the short term as the traders watch how the hard fork and the birth of bitcoin gold are going to affect the bitcoin market. The ETH prices are likely to be volatile as the market comes to terms with new developments and it will be interesting to see what it does.
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