Cryptocurrency Update: 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. Will this be the gift the keeps on giving?
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 just broken above the Ichimoku cloud. The Kijun line has also crossed above the Tenkan line.
Ethereum Price Action
Ethereum reached the same Fibonacci 61% level as Bitcoin, at around $470. LTC/USD has also broken above the Ichimoku cloud on the 4-hour setup. However, it appears to be struggling to break the $755 resistance level.
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Litecoin Price Action
LTC/USD reached even lower towards the 78% Fibonacci retracement level below $160. Litecoin appears to be mainly consolidating now, even though it also broke above the 4-hour Ichimoku cloud. Its short-term range appears to be between the 38% and 50% Fibonacci levels at $256 and $295.
All of the above cryptocurrencies erased most of the losses within a day, and are still working their way back up to key resistance levels.
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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.
Litecoin could drop to the $100 level and climb up above $1,000 whichever comes first.
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.