Bitcoin and Ethereum Forecast: Crypto Consolidates as Institutions Accumulate

What to Know

• Bitcoin remains supported above the $84,000 level after extended consolidation
• Sideways price action suggests institutional accumulation rather than distribution
• Ethereum finds strong support near $2,700 with upside targets at key moving averages
• Risk sentiment remains weak, delaying a broader crypto breakout
• Longer-term outlook stays constructive as monetary policy expectations evolve

In an environment that is pure chaos around the world, you have a situation where Bitcoin and Ethereum both seem a little bit boring. And boring is the beginning of turning things around.

The crypto backdrop right now is pretty ugly, but despite a lot of rhetoric and gnashing of teeth out there, the reality is that the markets are pretty stable. That for me means that they are worth paying attention to. Institutions are most certainly involved in these markets still and they will look to run them up as soon as they feel like taking on risk appetite. With global trade tensions and spats between even allies, it makes a certain amount of sense that money flows to things like gold which are safer, but eventually we start talking about money printing and loose monetary policy from central banks. That perhaps has people running to crypto eventually.

Bitcoin

The $84,000 level continues to be a bit of a floor in the market and I just don’t see why market participants would get short here. We have been very boring, very sideways, but we are sitting on top of what I think is pretty decent support. Because of this, I’m looking for a bounce to take advantage of. Later this year I expect to see $107,000, but it’s an institutional asset now; it’s not going to be behaving the way it used to. It might take some time to get there, but you’re in an area that people would look at as value.

Ethereum 

The market for Ethereum looks very much the same with $2,700 being very supported. The 50-day EMA is basically at the $3,100 level and the 200-day EMA is at the $3,300 level. I think those might be targets. Again, we need to have more of a risk-on type of attitude out there, so watch the Nasdaq 100. I often use that as a bit of a gauge for crypto and risk sentiment.

I don’t think that we’re on the precipice of some type of major massive move higher. The sentiment is horrible with the community. That’s generally when money makers start to look at the market, see it being very boring, and buy into it. I’m very interested in both these assets, but I recognize it could be 5 months before we fulfill any targets. That’s what happened for the latest run higher in crypto, specifically Bitcoin, before we got the Wall Street trade. We were just sitting there forever. It was something like 6 or 7 months of sideways action. So maybe that’s what we’re looking at. In the meantime, it offers a bit of a trading range, but longer-term investors certainly have to be licking their chops.

 

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