Most major cryptocurrencies including Bitcoin, Ethereum, and Litecoin had a Christmas gift for those investors who had set up a buy limit order at lower prices last week. What can we expect from the cryptocurrency market in the new year? Here is a quick look
In a massive but temporary pullback, most cryptocurrencies saw a sharp decline to key support levels on the 21st.
Bitcoin Price Action
Bitcoin reached the 61% Fibonacci retracement level around $11,200. On Tuesday’s trading session, Bitcoin price formed a bullish engulfing chart-pattern reaching for the 23% Fibonacci retracement level of $16,427.
On the 4-hour chart, BTC/USD has broken below the Ichimoku cloud. The Kijun line has also crossed below the Tenkan line. The future cloud appears to be bearish.
Ethereum Price Action
Ethereum, the second largest cryptocurrency by market cap after Bitcoin, has been hanging around the pivot level of $718 after the temporary pullback towards $472 last week.
Ethereum Founder Threatens to Leave While ETH Consolidates Before New Year
Ethereum’s founder is apparently fed up with the immaturity of the cryptocurrency community.
The 23-year-old Vitalik Buterin took to Twitter on Wednesday and threatened that he would leave if the crypto communities don’t get their act together.
He said people should “ differentiate between getting hundreds of billions of dollars of digital paper wealth sloshing around and actually achieving something meaningful for society.”
He believes people are focusing on posting meme about luxury cars and inappropriate jokes, which is not what the direction he envisions for the cryptocurrency world.
Ethereum has actually paved the way for hundreds of initial coin offerings. Now the total cryptocurrency market cap is around $0.5 Trillion. But Vitalik believes we have not quite earned this price explosion. Perhaps this could lead the way for a better crypto community in the new year.
What Do Cryptocurrency Bulls say?
Bitcoin and other cryptocurrency bulls continue to argue that it is another asset class called digital assets, like precious metals, stocks, real estate or bonds.
What Do Cryptocurrency Bears say?
Meanwhile, the bears remain concerned about the difficulties in regulation surrounding cryptocurrencies, believing that their lack of regulation will lead to their downfall.
By now we have already experienced at least one massive pullback. But this doesn’t mean that we won’t see new all-time highs across the board in 2018. We also could see yet another pullback, whichever comes first.
Bitcoin could see drops to as low as $6,000 and gains to as high as $50,000.
Ethereum could see a pullback towards $359 and gains towards $1,700 in the new year.
This for sure makes investing in cryptocurrencies both exciting and high risk at the same time. With that, I’d like to wish you a happy new year, invest responsibly, and I’ll see you with more updates in 2018.