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Now, with Bitcoin futures trading on both the CBOE and the CME, Bitcoin has become available to the larger players with big pockets, which includes short sellers. It will be interesting to see what will happen with the cryptocurrency when the first bear attack.
However, Ronnie Moas the founder of Standpoint Research has forecast Bitcoin to reach $300,000-$400,000. He advocates investing into the cryptocurrency on every dip.
On the other hand, UBS and ING have again warned that Bitcoin owners will lose their money. However, these calls by the large banks will have to be taken with a pinch of salt because they have been warning of a bubble from the start of the year and the digital currency is up about 19 times from there.
Interestingly, the French Finance Minister wants to discuss Bitcoin at the next G20 summit in April 2018. A lot seems to be happening in the cryptocurrency universe. We are in for interesting times ahead.
But first, let’s see what does the picture look like for the next few days.
In our previous analysis, we had suggested that the cryptocurrency will face resistance at the $20,000 mark and that is what happened.
Yesterday, Bitcoin reached a high of $1,9531.90, before cooling off to $17,900. We expect to see some volatility for the next couple of days.
The uptrend and the momentum remain intact as long as the virtual currency trades above the trendline. Our upside target for the cryptocurrency stands at $24,291.58.
However, if the trendline support breaks, Bitcoin will become weak. It will become bearish and indicate a larger fall once it falls below $15,200 levels. What is the downside target?
Once the 20-day EMA breaks, the digital currency can fall to the 50-day SMA, which is currently at about $10,333 levels. Therefore, traders should trade with a stop-loss.
On Dec. 16, we said that a range bound action is likely. However, the bulls are slowly nudging price towards the lifetime highs.
The cryptocurrency will resume its uptrend if the bulls manage to sustain above $780. The upside target following a breakout to lifetime highs is $995.99.
On the other hand, if the bears push Ethereum back from the highs, it is likely to consolidate between $610.03 on the downside or $780 on the upside.
We had expected Bitcoin Cash to gain momentum once it broke out of the range. However, it did not happen. The cryptocurrency was stuck in a small range for three days. Nevertheless, the bulls kept the price above the critical support of $1,758. Hence, we had recommended keeping the positions open.
After three days of range contraction, the range expanded today and propelled the cryptocurrency towards our target objective of $2,387. There is no significant resistance between the current levels and the lifetime highs. Therefore, we recommend that the traders trail their stops higher rather than book profits at the target levels because if the momentum sustains, a rally to new lifetime highs is also possible.
Our bullish view will be invalidated if the cryptocurrency sinks into the range once again. Therefore, please raise the stop-loss to $1,700.
We expected to see an attempt to break out of the highs. However, the bulls are lacking momentum at higher levels. Similarly, the bears are unable to sink the digital currency below the 38.2 percent Fibonacci retracement level of $0.63051.
When we see buying at lower levels and profit booking at higher levels, it results in a range bound action.
We expect to see Ripple trade between $0.63051 on the downside and $0.88268 on the upside. The next move will start either on a breakout or breakdown of the range. Until then, the cryptocurrency will remain volatile inside a range.
For the past three days, IOTA has formed a consecutive inside day candlestick pattern. This is similar to the coiling effect of the spring.
Today, the cryptocurrency has broken out to the upside, which is a bullish sign. The downtrend line is the final resistance, above which, we can expect a retest of the highs.
However, if the price fails to sustain above the downtrend line, we anticipate a fall towards the $3.032 levels once again. IOTA will become negative once it breaks below this critical support.
After yesterday’s up move, Litecoin is forming a Doji candlestick pattern today. This shows an equilibrium between the bulls and the bears.
In our previous analysis, we had forecast a range bound trading in Litecoin and that is likely to continue for the next few days.
Support exists at the 38.2 percent Fibonacci retracement level of $243.86. Similarly, the bears are likely to offer a strong resistance at the highs of $342.23.
The bull run will resume on a breakout and close above the lifetime highs. That will open a target potential of $497.53.
However, higher levels are attracting profit booking. Yesterday, the cryptocurrency gave up half of its gains and closed well below its intraday highs.
Therefore, we believe that a short-term top is around the corner. We expect a range bound action in Dash. The broad range is between $900 on the lower end and $1,250 on the upper end.
The market data is provided by the HitBTC exchange.