Connect with us

Bitcoin

Bitcoin Investors: Expect Wild Fluctuations in 2018

Published

on

2018 is expected to be another wild year for bitcoin, according to one analyst, who foresees huge fluctuations in the world’s leading cryptocurrency.

Volatility Continues

The value of bitcoin is in for a wild ride next year, according to Nick Colas, Wall Street analyst and co-founder of DataTrek. In a recent interview with CNBC. Colas argued that the digital currency over the next 12 months could fluctuate between $6,500 and $22,000, with the midpoint likely coming in at around $14,035. The midpoint  represents a more than 10% drop from Wednesday’s level.

“Bottom line: bitcoin can rally to $22,000 and still be reasonably priced, or plummet to $6,500 and also be correctly valued,” he said. “We expect to see bitcoin trade for both prices in 2018.”

When it comes to evaluating bitcoin’s true value, he added:

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

“Bitcoin and cryptocurrency are hard to value and their economic utility relies on use cases that are not yet built. Of course the volatility we’ve seen will continue.”

In addition to huge fluctuations, Colas envisions four market “crashes,” which he describes as a price drop of 40% or more.

Bitcoin posted a string of record gains through December before a sharp correction erased thousands from its value. At press time, the value of a single token was $15,397, according to the CCN price index. The digital currency traded as high as $16,521 earlier in the day.

Earlier this month, bitcoin’s market cap rose above $300 billion. All the major altcoins came along for the ride, with the total market cap for all cryptocurrencies peaking near $650 billion. The total market cap has since moderated to around $598 billion, according to CoinMarketCap.

Institutional Demand No Guarantee of Price Stability

Colas’ prediction is even more compelling when we consider the influx of institutional capital into the bitcoin arena. Although the recent launch of bitcoin futures on the CBOE and CME exchanges has been heralded as a watershed moment for cryptocurrency, it is no guarantee of success, and it is certainly no guarantee that prices will become more stable.

As Hacked reported last week, institutional investment presents somewhat of a conundrum because nobody knows how the so-called ‘bitcoin billionaires’ – those who control large swathes of the market – will react. As it currently stands, 1,000 investors hold about 40% of all bitcoin in circulation for an average of $350 million per head.

It remains to be seen whether traditional investment vehicles like futures contracts will compel these holders to reduce their stake in the digital currency in exchange for cash. If this were to happen, a certain percentage of tokens will be taken off the market, which may contribute to greater price stability.

Of course, there is no guarantee that large investors are interested in reducing their position. In fact, history has clearly demonstrated that bitcoin investors are eager to buy on the dips.

In addition to bitcoin futures, talks of exchange-traded funds (ETFs) are also heating up. It was only last week that CBOE filed to list six ETFs with the Securities and Exchange Commission.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 453 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Bitcoin

Bitcoin’s Stalled Recovery Keeps the Bulls in Check

Published

on

The bitcoin recovery engine stalled on Monday, setting the stage for a possible price reversal that mirrors last week’s 70-day low. With the total market cap so low, a decline in bitcoin would almost assuredly lead to a similar correction for other cryptocurrencies.

Bitcoin Price Levels

Bitcoin prices reached a low of $6,335.77 on Monday, as bearish pressure continued to undermine last week’s modest recovery. Bitcoin rallied to a high around $6,700 last Thursday shortly after bottoming near $6,100.

The cryptocurrency later recovered around $6,660A7 but remains in a bearish pattern going all the way back to June 9. BTC/USD is down roughly $1,000 over that stretch. Price action over the past 24 hours suggests that a further breakdown is probable.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

The cryptocurrency market cap reached a high of $284 billion on Monday. Bitcoin and altcoins exhibited price stability over the weekend as trading volumes continued to plummet.

Depressed Market

As we reported this weekend, cryptocurrencies have witnessed a steady decline in trading volume that could make the market more prone to volatility. Daily trade volumes bottomed near $9.5 billion Sunday, the lowest in over two months. Volumes are down a staggering 80% since the market peaked in early January.

The absence of new money paints the picture of a depressed market in need of direction. With organic searches for “bitcoin” and “cryptocurrency” the lowest in around nine months, a large influx of new retail traders is highly unlikely.

Exchanges such as Coinbase are betting big that the next major catalyst will come not from retail traders, but large institutions. To help make that a reality, Coinbase has launched a new crypto-custody service targeting bitcoin whales. According to crypto hedge fund manager Kyle Samani, regulated custody services are the game changer that will attract institutional-scale capital.

“There are a lot of investors where custodianship was the final barrier,” Samani told Bloomberg in a phone interview. “Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.”

Coinbase isn’t the only organization vying to become a qualified custodian. Goldman-backed Circle and BiGo have also been in negotiation with regulators on the matter. Earlier this year, investment bank Nomura Holdings joined forces with two cryptocurrency firms to create a custody consortium. Bloomberg reports that at least three Wall Street custodians – Bank of New York Mellon Corp., JPMorgan Chase & Co. and Northern Trust Corp. – are exploring cryptocurrency custody services.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 453 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Bitcoin

Crypto Expert Maintains $60,000 Price Target for Bitcoin

Published

on

Back in January, cryptocurrency expert Phillip Nunn made two bold predictions: bitcoin will reach a low of $6,000 this year before rebounding to a high of $60,000. With his first prediction proving true, Nunn remains steadfast that the latter price point will also come to fruition in spite of recent market turmoil.

The Bulls Will Prevail

In a recent interview with BusinessCloud U.K., Nunn said market volatility will ultimately work in favor of bitcoin, leading to an historic rally before year’s end.

Referring to his January forecast, Nunn said “the prediction was based on, first of all, market volatility which we’re experiencing at the moment.”

Nunn, who heads The Blackmore Group and Wealth Chain Group, said his $60,000 price forecast is “absolutely” possible given bitcoin’s long-term trajectory and role in disrupting traditional sectors. However, at present, bitcoin and other digital currencies are at the mercy of market sentiment and price manipulation, given the relatively small size of the industry. Case in point: cryptocurrency trade volumes plummeted to around $9.5 billion this weekend, the lowest in over two months. Such low turnover makes crypto assets prone to extremely wild swings not unlike the price forecasts Nunn put forward in January.

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

“All the money that exists in crypto at the moment is from the public, so it’s all about market sentiment,” he said. “A flood of bad news can wobble the market, stuff like regulation. The industry is so small that there’s market manipulation.”

Ultimately, Nunn says bitcoin is helping to create an “internet of value” that will disrupt everything from money to record-keeping.

His view differs markedly from an institution like the Bank for International Settlements (BIS), which on Sunday released a report arguing for bitcoin’s ultimate demise. Although BIS didn’t frame the outcome exactly in those terms, the Swiss institution said the digital currency is ultimately too costly and too prone to manipulation to become a mainstay in traditional finance.

Bitcoin Prices

Bitcoin was little changed on Sunday, as prices consolidated around $6,500. With daily turnover of $3 billion, bitcoin’s trade volumes accounted for more than a third of the crypto market total.

The world’s largest cryptocurrency by market cap is down nearly 5% over the past week. That pales in comparison with some of the leading altcoins, which have fallen double digits over the same period.

Bitcoin has experienced multiple selloffs this year, with some analysts attributing the decline to the launch of bitcoin futures in December. Fundstrat Global Advosrs’ Tom Lee recently argued that bitcoin prices tend to fall into the expiration of the monthly futures contracts. This is likely caused by traders longing actual bitcoin and shorting the futures market.

Like Nunn, Lee maintains a strongly bullish outlook on bitcoin and has called for prices to rebound to $25,000 this year despite recent market dynamics.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.5 stars on average, based on 453 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Coins Consolidate Above Support but Downtrend Still Intact

Published

on

It has been a very quiet weekend for the major cryptocurrencies so far, as the predominantly bearish week ended with range trading and a collapse in volumes across the board. Most of the top coins failed to gain back the ground they lost during the steep selloff, with only Binance Coin and VeChain showing meaningful bullish momentum.

The relatively strong Ethereum, EOS, and Ripple remained stable, with ETH hovering around the $500 level, EOS trading north of the key $10 support despite the network’s technical issues, and Ripple being stuck in a narrow range just below the widely-watched $0.54 resistance level. The total capitalization of the market has been virtually unchanged at $280 billion, as both Bitcoin and Ethereum flatlined.

BTC/USD, 4-Hour Chart Analysis

// -- Become a yearly Platinum Member and save 69 USD. Click here to change your current membership -- //

Bitcoin is trading right at the short-term support level near $6500, holding up just above the April low, with the crucial long-term support zone near $5850 that is vital for the whole segment. The coin is clearly in a short-term downtrend, while also being relatively weak on all time frames. The oversold short-term momentum readings are now cleared and that could point to a test of the lows in the coming days.

 

ETH/USD, 4-Hour Chart Analysis

Ethereum also cleared the short-term oversold readings, but it failed to leave the vicinity of the $500 support/resistance level. Despite the coin’s undoubted relative strength, and the still bullish long-term setup, the short-term trend signal remains a sell, and the declining trend is intact. Traders should still not enter new positions here, while investors could add to their holdings on the short-term selloffs. Strong resistance is ahead between $555 and $575, while further support is found at $450, $400, and $380.

Divide Widens between Leaders and Laggards

LTC/USD, 4-Hour Chart Analysis

Although short-term correlations skyrocketed during last week’s decline, the divergence between the relatively strong and weak coins got even more pronounced, with the likes of Litecoin, Dash, and Monero severely lagging the broader market. Litecoin got stuck below the $100 level after the breakdown last week, and it is below the long-term base pattern, as it failed to show relative strength during the weekend. Immediate support is found at $90, but new lows are likely in the coming days, as the short-term downtrend remains dominant. 

BNB/USDT, 4-Hour Chart Analysis

As a positive outlier, Binance Coin remained bullish amid the broad decline, holding on to the relative strength that it has been showing for several weeks. The coin’s stability is encouraging, and it’s nearing its rally highs with today’s surge, while having a good chance of resuming its uptrend, even as another segment-wide selloff could cause a jump in volatility again.

For now, the market is torn between bullish and bearish forces, and investors should focus on the technicals of BTC and ETH, while also keeping an eye on the leaders of the rally for signs of sutained strenght.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.6 stars on average, based on 276 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

12 of 15 Seats Available

Learn more here.

Recent Comments

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending