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Bitcoin futures trading volume in its first
week was only a fraction of cash Bitcoin transactions. Futures
volume has been abysmal at $60 mln per day, compared to
the cash transactions of $8.5 bln each day.
However, come Sunday, the CME will start Bitcoin
futures trading. Additionally, large brokerage houses are likely
to follow suit and allow their clients to trade in Bitcoin
futures. If this happens, we are likely to see the futures
volume pick up.
Will the participation of more traditional investors boost the
market capitalization of Bitcoin and the
cryptocurrency universe? Max Keiser who hosts the Keiser Report on RT certainly thinks so. He
believes that futures trading will help the cryptocurrency
market capitalization reach $1 tln and higher.
Notwithstanding, these are predictions for the long-term. Let’s
look at the charts to find out the likely movement of
cryptocurrencies in the short-term.
Bitcoin broke out to new lifetime highs yesterday
after a three-day consolidation. This is a bullish development.
The breakout opens up a pattern target of $24,291.58 for Bitcoin. However, this target is
unlikely to be achieved in a hurry. The cryptocurrency is
likely to face some resistance at $20,000.
Our bullish view will be invalidated if the bears overpower the
bulls and sink the digital currency below $15,200 levels.
With the start of futures trading on CME, we can expect an
increase in volatility. Therefore, traders should reduce their
position size for the next few days until volatility subsides.
Intraday traders, however, will get ample opportunity to place
bets on both sides of the trade.
Ethereum fell to a low of $610.03 yesterday, close
to our expectation of a fall to the 50 percent Fibonacci
The long tail yesterday shows that bulls are eager to buy the
dips. However, failure to break out to new lifetime highs shows
that they are booking profits at higher levels. As a result,
Ethereum is likely to remain range-bound until the price
breaches $610.03 on the downside or $780 on the upside.
However, if the bulls’ breakout to new highs and sustain it,
the next target on the cryptocurrency is $995.99.
These targets are only assumptions based on technical analysis.
Many times these targets are not met and we change our view
accordingly. Therefore, traders should always trail their stops
higher to safeguard their profits and not be fixated only on
We are in the money on our trade in Bitcoin Cash. So, does the
chart pattern suggest further upside or has the rally run its
The cryptocurrency broke out and closed above the range on Dec.
14. This should have ideally propelled Bitcoin Cash towards its
target objective of $2,387. However, it could
not cross $2,100 levels.
Subsequently, bears attempted to push the cryptocurrency back
into the range. However, the bulls have managed to close above
$1,758 levels for the past three days, which is a positive
The next up move will start once the price breaks out of $1,950
levels. Hence, please hold the positions with the stop-loss at
breakeven. The bullish view will be negated once the price
sinks below $1,520 levels.
On Dec. 15 the cryptocurrency pulled back to the 38.2 percent
Fibonacci retracement of the rally. Nonetheless, the lower
levels continue to attract buying from the bulls. We expect the
bulls to attempt to break out of the lifetime highs again. If
successful, Ripple will make a dash towards $1 levels and higher.
However, if bulls fail to breakout and sustain above the
lifetime highs, we are likely to witness a few days of
range-bound trading between $0.61 on the lower end and $0.88268
on the upper end.
The bulls purchased the fall to the critical support levels.
However, the cryptocurrency continues to face resistance on
The chart pattern will become bullish in the short-term only on
a breakout and close above the downtrend line, above which a
rally to the lifetime highs is likely.
Nevertheless, if price fails to breakout of the downtrend line,
it will lead to the formation of a descending triangle pattern,
which is a bearish development.
The cryptocurrency will become negative on a breakdown and
close below the critical support level of $3.032.
We had forecast a period of correction/consolidation in
our previous analysis and that is what we
As expected, the bulls purchased the dips to $243.86 levels,
which is the 38.2 percent Fibonacci retracement of the rally.
However, we believe that the levels between $300 and $342.237 will continue to act as a stiff
resistance. We believe that after the sharp rally, Litecoin will be range-bound for the next few
Notwithstanding, if the bulls’ breakout to new lifetime highs,
then the next target objective on the upside is a rally to
Though Dash has not run away to its target of $1,199.01,
it’s sustaining above $815 levels, which is a positive
indication. Bears attempted to push the cryptocurrency back
below $815 levels on Dec. 15, however, they were
This increases the possibility of an upside breakout of $979
and a rally towards the target objective. The bullish view will
be invalidated if the digital currency falls and sustains below
Traders who had purchased long positions on our earlier analysis should raise their stops
to $780 on the remaining 50 percent positions.
The market data is provided by the