Crypto Frontline

Bitcoin

Between December 1^st and 7^th, the bitcoin price had an impressive performance, starting the week around 9,800 US dollars per coin and ending the week at 15,744, an almost 6k gain in just a week, the biggest weekly gain since bitcoin had been launched. Despite other weeks, the price did not have wild swings and it managed to float above the 20 EMA as it could be seen in our chart below.

It will be interesting to watch how the price will end up this week since an exhausted type setup could be forming. On the weekly chart we have the biggest weekly candle in the entire chart and if we won’t see some follow through this week, then a corrective move on the downside could follow.

December 11^th marked a new important milestone for bitcoin, as the CBOE launched the bitcoin futures contract. The initial price was around 16,000 and since then it climbed to a peak of 18850, only to resume the downside and it is currently trading at 17750. The futures are almost as volatile as the bitcoin price, but still, there seems to be demand for the new instrument.

For the days ahead, since the corrective candle is decently small in size and cover very little ground, we expect the price action to break higher and head towards the 18,000 or 18,500, where some profit taking might follow.

Litecoin

Between December 1^st and 7^th, litecoin had a relatively good price action performance, but the volatility had been relatively low, compared to the bitcoin price, that soared more than 6k in price. Litecoin had a much better performance in the last few days, surging above 300 US dollar per coin, with a daily price increase of 82% on December 12^th. As the latest headlines point out, there is no major economic event that sparked that huge volatility, but the demand for litecoin had increased from the traditional banking sector, since litecoin is much easier to mine than bitcoin and the fees are also smaller. Litecoin market cap surged above $15B and it is now the fourth largest crypto currency, after bitcoin, ethereum, and bitcoin cash.

Even though the price had an astonishing performance, it is advised that traders should have a cautious approach before trading long. Usually, after strong spikes, the market tends to consolidate or correct lower. Taking that into account, buying at the current high point is not the best idea. A consolidation lower should be expected before a new leg up should start to build.

In the days ahead, the price of crypto currencies should continue to be volatile as usual, so make sure to have a well-established risk management system before jumping into the market.

Risk Warning and Disclaimer

Trading cryptocurrencies on margin carry a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance.