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Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash – Monthly Analysis

Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash – Monthly Analysis

  • Tuur Demeester came up with a graphical representation with his tweet of “why some predict Bitcoin at $1mn” published in year 2014 which was quite a precise analysis.
  • Another tweet by John McAfee said – BTC has accelerated much faster than my model assumptions. I now predict Bitcoin at $1 million by the end of 2020.
  • I think bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now. I would see $100 as being a lot more likely than $100,000 ten years from now,” – Kenneth Rogo told CNBC.
  • Billionaire investor Warren Buffett told CNBC on Wednesday the recent craze over bitcoin and other cryptocurrencies won’t end well.
Amidst all the above predictions, Bitcoin went through the phase of Doom, Boom, Corrections and Consolidations.

In the outrageous year of 2017 for cryptocurrencies, Bitcoin’s value surged from the bottom of around $1,000 to nearing $20,000 before it dropped down closing at $13,500. At present Bitcoin trading close to $7,000 is right in center of all the above predictions and it would be interesting to see as to which side of the coin would be the result post the above prediction flips.

With such high volatility in this market, even new Crypto-Hedge Funds have found huge interest and the inception of the same has drastically risen over time.

Crypto Funds by Inception Year :

Crypto Funds by Inception Year

With the boom in cryptocurrency space, we saw the highest number of inception of hedge funds in crypto markets in the year 2017. However, the reckoning of crypto-funds seems to have started. At present, close to 9 crypto-funds have recently closed due to profits drying up as all
major cryptocurrencies by market capitalisation have plunged more than 50% in last quarter from their respective highs.

Why Bitcoin Price Is So Dynamic?

The value of Bitcoin has risen and dropped significantly on daily basis, dragging with it the alternative cryptocurrencies like Ether, Bitcoin Cash, Ripple, etc.

If you’re new to the world of cryptocurrencies, this kind of volatility can be frightening (and painful if you invested at the wrong time), but if you take a closer look it starts to make sense. Here’s why Bitcoin’s price keeps changing so drastically, and why it may get more stable in the future.

  1. The rising popularity of Bitcoin and other crypto-currencies. This leads to the process of gaining stability over time as very less people have control over the prices and any emotional sentiment of the traders/investors leads to high volatility in market which is on the ladders of stages of maturity.
  2. The other possibility is the Government getting regulations all over the world and getting stringent policies to have a control over the speculation. This is positive in terms of cryptocurrency markets being more stable with regulations which will attract more retail and institutional investors over time.

Despite the plunge amidst the fear that bitcoin bubble has burst, crypto investors suggest that cryptocurrencies could well surge again and that 70% volatility in price is normal in the world of cryptos. The drop in the price is actually beneficial for the industry, as investors and enthusiasts will be more incentivised to educate themselves about the crypto-space.

Let’s analyse Bitcoin Price/Volumes :

Bitcoin Price / Volume Chart

Source Image : coinmarketcap.com

The above historical chart represents that the majority of volume chunk we saw was post October 2017, when the top-ranked crypto was booming, thus it implies the indication of new entrants majorly during the last 6months. Having said that, the current fall in the market is more sentimental than a bubble burst.

The recent drop looks heavily influenced by the mix of unfavorable news and speculations around the space and thus we saw Bitcoin and other alternative currencies having major short selling. Majority of the respective sentiments was affected by the main media news of google and twitter banning crypto-ads on their platform with the latter being quickly following it the day it published the announcement of the same.

A couple of another spoilers over the month that blew-off the crypto markets prices were shutting down of exchanges due to regulatory affect and failure of Litepay payment systems.

Among the above there were a couple up-lifters as well with G20 summit considering baby step approach towards getting regulations over cryptocurrencies. Following the above, South Korea plans to release crypto- tax reforms by the end of June 2018.

Bitcoin Price Chart :

At the time of writing, Bitcoin is indicating a fall of over 8% in last 24-hours currently trading at $6,762.

 

Bitcoin Price Chart

We mentioned in our previous weekly analysis, that Bears are holding more strength in markets, and breaking some major important support is likely. Our analysis proved to the point with BTC in previous week has made an intraday low of $6,420.

As we write, 50 EMA has also crossed over 200 EMA forming a bearish crossover and Bears are likely to rule market for a relatively more time. There is strong resistance around 20 EMA and descending line of resistance seen in charts above which is close to $8,000.

Bitcoin has some major support at $5,500-$5,000 and should ideally hold the relative level. If there is any breach of the support of $5,000, then investors are likely to frenzy and it will create a huge FUD in markets.

Alt-Coins Analysis :

With Bitcoin currently ruling the market both with respect of market capital and volumes with dominance around 45%, other coins are likely to follow Bitcoin trends and all crucial support and resistance levels for Alt-Coins will depend upon the likeliness of Bitcoin holding or breaking it’s important levels.

Below is the detailed technically evolved Price pointers for Bitcoin and other major alternative coins by market cap.

Monthly Price Pointers :

Monthly Price Pointers

Traders can smartly use their skills and can refer to the technical levels above to make optimised trade decisions.

Monthly Price Analysis :

Monthly Price Analysis :

 

Volume Analysis :

Volume Analysis

 

Coin Distribution (Indian Exchange) :

Coin Distribution (Indian Exchange)

 

Source :
1. cryptowat.ch
2. news.bitcoin.com
3. cnbc.com
4. hackernoon.com
5. coinmarketcap.com
6. tradeblock.com

 

Disclaimer :

This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate.

The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.

Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purpose only and should not be treated as an investment advice.

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