Bitcoin continues to grow at a rapid pace where it has found no resistance. After last week’s update report, where we had an increase of about $2000 in its value, this week, while CBOE (Chicago Board Option Exchange) opened two days ago, Bitcoin’s value jumped another 50%. We expect to see it getting into the bigger exchange – CME, next week on December 18th. This may affect investors’ expectations and lead to further gains, as well as “sell the news” event, that will lead to massive drop.
As of this writing this update, Bitcoin is being trading around the $17,500 area and its next resistance level lies around $18,800. A leap of over 2200% from December last year, where its price ranged around $700. An increase like this has not been seen since 2013. For newcomers, keep this in mind: If you do not know how to manage risks in the crypto markets, we recommend to research for a bit before investing. (Bitcoin for beginners).
Along with the rise in its value, we can also observe a rise in the dominance of the bitcoin against the Altcoins, reaching 60% bitcoin dominance over the altcoins. This dominance levels of April of around 50% – 60% in favor of the Alts. This index may explain the steep declines in the last few months of the altcoins versus the Bitcoin rate. Given that the dominance is in favor of the Alts in the full graph, we see that the trend has sustained since 2013.
In the Altcoins field – most of them fell to another low against Bitcoin, but many of them quickly corrected back up. Looks like many charts of altcoins are the same as last December. January was amazing month for altcoins, will it be the same this year?
The rise in Bitcoin’s value has led to Altcoins dropping about 30% on average against Bitcoin. However, it seems that against the dollar, the Alts broke new records. This may confuse new traders, so it is important to note that the dollar exchange value of most of the alts may not reflect their value as most of them are not traded against the dollar, or traded mainly against Bitcoin.
On a daily basis, today seems to be a very positive day in the whole crypto market. One of the stars is the Litecoin, which has raised 200% in the past few days, reaching an all-time high against the dollar of $317. One of the main reasons for the surge, is the fact that transactions fees are very low on the Litecoin network, compared with Bitcoin network fees. This, along with the fact that Litecoin is traded in almost on crypto exchanges, seems to have increased demand for it.
The Bitcoin value is also influenced by political factors. The market was influenced last year by Donald Trump being elected as president of the US, and even cheap manipulations by the CEO of JP Morgan, may now be influenced by the Trump administration’s instability under the influence of the #METOO campaign. The Bitcoin’s view of an integral part of the public is perceived as anti-establishment, and therefore, the public’s loss of confidence in government bodies may lead to increases in the Bitcoin value.
In conclusion, demand in the Crypto market, and in Bitcoin in particular, is skyrocketing these days. We seem to be continuing this week with crazy hype surrounding everything related to Blockchain and Bitcoin. Wonder how long this crazy hype will last.
More news from past week:
The opening of trading on the CBOE led to unusual loads and even to a temporary shutdown of the exchange’s website.
Chairman of the Securities and Exchange Commission, released a statement in which he said he was encouraging new investors (“main street investors”) to be open to options offered by the crypto market. However, the chairman noted in his statement that the public must be cautious and aware of the dangers involved. He also listed a series of questions that an investor should be able to answer before he or she invests in an ICO or crypto-currency.
On the other side of the world, regulators in South Korea have announced that they are considering banning trade in crypto currencies in the country.
On the daily chart, the RSI indicator is low, usually indicates that there is space for another rise. In the last few days, the bitcoin price continued to rise with support around $16K. Even after a week of rally with volatility of 1000s dollars per day, it seems we are still in the middle of a rally.
In the past 24 hours, price has been around $16,800 (which is almost the all-time record on BitStamp exchange) with resistance levels around $18,000. Is $20K the next target? Looks like it is coming faster than we think.
Against Bitcoin – after a sharp drop that brought the Ethereum price to a low area, support was found around 0.025 BTC. In the past 24 hours, the price has surged by about 30% and broke the resistance levels around 0.037BTC. These levels became resistance levels again after the rise of Bitcoin from the past hours.
Compared to the dollar – the value reached an all-time high of over $600. Amazing. It seems that the resistance level of $500 have been broken too quickly.
Against Bitcoin – we saw sharp rises from the lows. Starting from the shakeout areas of around 0.005, LiteCoin value has grown more than 200% after five straight days of gains, with another 80% gain today. The value seems to calm down at around 0.019 BTC, right on Fibonacci resistance levels that have been marked by previous market updates.
Will the rise continue and reach an all-time high against Bitcoin? After an increase of over $200 in one week, trading Litecoin is considered at very high risk, but the crypto market is unexpected… Support at 0.012BTC looks far from where we are.
Against the dollar – the weekly chart shows the reversal pattern reached in the areas of $95. There, Litecoin continued to rise up to $320 in the past day. It’s over 100% from areas of $140.
Against the Bitcoin – we saw Bitcoin Cash dropping to a low of 0.068 BTC, and quickly back to 0.09BTC. After a positive day, BCASH was trading in these areas in the past 24 hours. We noticed a massive growth in trading volumes and a change in momentum. Resistance levels currently fluctuate around 0.12BTC. This is worth paying attention to.
Against the dollar, the price is volatile and currently ranges from $1300-1500, which is looking positive, to resistance levels at around $1,700.
The trend seems positive in this veteran altcoin: with every correction that comes, supports are getting up to higher lows than in the past, which indicates that interest and support are relatively stable to positive trend. Against Bitcoin – the price is being traded around 0.017BTC, with last week’s resistance level around 0.022 BTC. If we break this level we are expecting to go much higher.
Against the dollar – the sotry here is different. It appears that it’s maintaining relative stability with the uprising Bitcoin price that has contributed to the sharp rise in Monero from $140 to $320, where it encountered resistance level. Currently, traded around $300.