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Bitcoin Prices Clip $12,000 as Institutional Demand Grows

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The plot thickened for bitcoin on Tuesday, as prices breached $12,000 for the first time ahead of the planned launch of BTC futures this weekend. With the gain, bitcoin has doubled in price since the Nov. 12 swing low.

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Record-Setting Pace Continues

Investors have by now grown accustomed to headlines proclaiming new record highs for bitcoin. Tuesday was no exception, as prices crossed $12,000, according to Bitfinex. At press time, the exchange was transacting BTC/USD at a rate of $12,114.

Data gathered by Barchart shows BTC/USD at roughly $12,123, which represents a gain of 3% for the session.

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Daily turnover BTC/USD eclipsed $7.6 billion, according to CoinMarketCap. Volumes have been growing steadily in recent weeks as prices continued to reach new peaks. Turnover on Tuesday was spread across multiple exchanges, with Bitfinex accounting for 8.5% of total volumes. South Korea’s Bithumb saw 7.6% of daily transactions. IOTA-BTC transactions initiated on Binance accounted for a similar amount.

At present values, bitcoin is capitalized at $205 billion. That represents roughly 57% of the total cryptocurrency market.

Pent-Up Institutional Demand

The CBOE Futures Exchange shocked the cryptocurrency community this week after it announced plans to begin offering bitcoin futures at 6:00 p.m. ET Sunday. In doing so, CBOE gives rival CME Group a run for its money as the latter was widely expected to be the first to initiate bitcoin futures.

“Given the unprecedented interest in bitcoin, it’s vital we provide clients the trading tools to help them express their views and hedge their exposure,” CBOE CEO Ed Tilly said in a statement.

Under CBOE, bitcoin futures will trade under the ticker “XBT.” They will also be free until the end of the year.

CME Group will launch its bitcoin trading platform Dec. 18. Meanwhile, Nasdaq is expected to enter the race sometime next year, perhaps as early as Q2.

Despite the euphoria surrounding crypto futures, it’s not entirely clear how the new derivatives will impact price action. In the current market environment, the only market participants that need to hedge are bitcoin investors and the miners creating new currency. In a derivatives market, there’s a lot more hedging at play given that the market is largely made up of bears or pessimists. According to some analysts, the new futures environment could make large holders of bitcoin especially vulnerable.

That being said, bitcoin investors have grown accustomed to volatility. Violent swings in price are routine for the cryptocurrency, which has still managed to push higher for most of the year.

Bitcoin’s acceleration has been a boon to the thousands of other cryptocurrencies on the market. At last check, there were 17 other cryptos valued at $1 billion or more. This includes two cryptos that recently forked from the original blockchain – bitcoin cash (BTC) and bitcoin gold (BTG).

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. 

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Analysis

Long-Term Cryptocurrency Analysis: All Majors Stretched as Ripple Finally Breaks-Out

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Although the previous leaders of the rally started to correct or at least consolidate in the wake of the overbought long-term setups, another batch of coins turned exponential, with Litecoin, Ripple, and Ethereum all registering lofty gains this week. Bitcoin, Monero, and Dash have been holding up well, and even drifted to new marginal highs during the period, while Ethereum Classic had a more volatile week, before moving to new highs today.

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XRP left the broad trading range that has dominated its market since May, and surged to new all-time highs while almost quadrupling in the process. As the coin was the only major on a long-term buy signal according to our trend model, and the move triggered a sell signal on Thursday, now all of our tracked coins are on sell signals.

Ripple could be in for further short-term gains but long-term investors should reduce their positions after this week’s spike. Support levels are found Major at the prior high near $0.4250 and in the $0.30-$0.32 range.

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XRP/USDT, Daily Chart Analysis

IOTA, which has been leading the market higher before is down by more than 30% off its all-time high, but given the exponential move before, an even deeper correction is likely in the coming weeks, and investors should wait until a more favorable setup to add to their positions. Strong support is only found at $3 and $1.5, but potential Fibonacci support is at $2.35.

IOT/USD, Daily Chart Analysis

Let’s see how the long-term charts of the other majors look this weekend.

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Analysis

Technical Analysis: Bitcoin Up Again as Altcoins Mixed in Volatile Trading

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Bitcoin is at a new all-time high today, although the momentum of today’s move is far below from what we saw recently, and the coin only managed to reach a marginal record high yet again. BTC is now worth $300 billion, and it is still trading right at the short-term trendline, inside a rising wedge pattern that shows a clear momentum divergence.

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With the short-term trend still being intact further gains are still possible, but as all the majors are overbought from a long-term perspective, we still advise investors to wait for a better buying opportunity before adding to their holdings. Primary support is still found near $13,000, with further levels at $11,300, $10,000, $9000, and stronger levels at $8200 and $7700.

BTC/USD, 4-Hour Chart Analysis

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 XRP entered a volatile short-term correction after its two-day surge after giving a short-term sell signal yesterday, and the coin spiked back towards $0.60 before settling down just below yesterday’s highs. The long-term setup also turned overbought thanks to the almost 300% rally, and now investors should reduce their holdings, even as further gains are still possible. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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Analysis

Cryptocurrency Analysis: Ripple Continues Rampage as Litecoin and Ethereum Enter Correction

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Ripple remained in the center of attention in the segment after breaking out to a new all-time high yesterday, and the coin almost doubled in value, climbing above the $0.80 level. The currency concluded a 6-month long consolidation pattern with the move after being the only major on a long-term buy signal in our trend model.

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XRP gave a short-term sell signal today, while turning neutral regarding the long-term setup. Investors now shouldn’t add to their positions, although further gains are still possible, and reducing holdings somewhat is a good idea here. Major support is still found at the prior high near $0.4250 and in the $0.30-$0.32 range.

XRP/USDT, 4-Hour Chart Analysis

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While Bitcoin stagnated, and Bitcoin Cash jumped, Ethereum, Litecoin, Dash, and IOTA has been drifting slightly lower, although the recent gains are still mostly intact, and the basic setup in the segment is unchanged.

Litecoin fell below the $300 level after yesterday’s consolidation, and the coin faced strong selling pressure in the latter half of the session. The currency remains extremely stretched regarding the long-term momentum indicators, and although the short-term uptrend is still intact, a deeper correction is likely in the coming weeks, with key support levels found at $125 and $100, and weaker levels at $260 and $170.

LTC/USD, 4-Hour Chart Analysis

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