Bitcoin Trading Alert: Ethereum Price Analysis, Possible Top in Bitcoin

Bitcoin is rigidly ter correction mode, so the attention of mainstream media shifts to other cryptocurrencies which might not be done going up for the ogenblik. Te an article on Yahoo Finance, wij read:

(…) bitcoin is actually on the lower end, spil far spil cryptocurrency volatility goes. Ethereum has enlargened more than 100-fold overheen the past year, while Ripple has more than doubled within the past week alone.

Here are the key takeaways. Very first, it’s significant to realize that some of thesis voorstelling figures are simply not sustainable. For example, if Ethereum were to rise another Ten,767% overheen the next year, the digital currency would have a $8.9 trillion market cap. Te other words, don’t buy any digital currencies and expect the same spectacle going forward.

Most importantly, any asset that can dual, triple, or more te such brief periods of time is a speculative asset, not an investment. Waterput another way, if it can dual ter a week, it could also get cut ter half ter a week just spil lightly. Given cryptocurrencies’ current volatility, they are far closer to lottery tickets than to stocks and bonds on the risk spectrum.

It might well be the case that Bitcoin is the most popular digital currency by market cap and concentrates the attention of speculators quicker than other digital currencies. Wij&rsquo,re witnessing Bitcoin keurig now but Ether resumes to rise (at the ogenblik of writing thesis words). This would support such a conjecture. Also, historically, periods of strong appreciation te cryptocurrencies tend to coincide. This might also mean that if Bitcoin is up for a correction, then Ether and other digital assets are facing a similar stir te the near future. Ultimately, the very latest appreciation te cryptocurrencies has bot nothing brief of spectacular and this might be an indication that any serious correction might be actually fairly severe.

On BitStamp, wij see a correction ter Bitcoin which brought the currency below the level of the previous local top at $17,428. This might seem like an significant stir ter the market. Is it? Recall our previous voorzichtig:

It seems spil however the very latest budge is a confirmation of the bullish outlook. Wij have seen a stir up so far, and it&rsquo,s bot strong enough to make us view the rebound spil having potential to proceed from here. At the same time, wij are very conscious of the opened up nature of the market. Bitcoin hitting media outlets suggests that the speculative boom might be reaching its straks stages. The momentum, however, is still with the currency and wij toevluchthaven&rsquo,t seen any decisive signs of a turnaround.

The price activity wij have seen since then has mostly turned the very short-term outlook around. This means that the perspective for the next duo days seem a lotsbestemming more bearish than bullish now, mostly based on momentum and the activity visibly below the previous all-time high. The volume on which this stir has taken place has bot relatively strong. This also contributes to the bearish very short-term outlook. But is the situation switched enough to consider hypothetical cut-offs at the uur?

On the long-term Bitfinex chart, the correction is already very visible. Coupled with the exponential budge up, this looks fairly worrying. Te our latest comments, wij wrote:

The latest act confirmed the short-term bullish outlook. It seems that Bitcoin has slagroom to go up further still. At the same time, because of the relatively extreme nature of the market, wij absolutely have to be very cautious when approaching the market. If you are fresh to our analysis, mind that Bitcoin is utterly volatile and betting the ranch on the currency is a bad idea, te our opinion. Generally speaking, Bitcoin should be only a petite part of one&rsquo,s portfolio (no more than, say, 5%) and only money one can absolutely afford to lose. None of this is investment advice, you absolutely have to do your own due diligence. At the current crossroads, our opinion is that Bitcoin still has slagroom to budge forward ter a risky environment. (…)

Is this part of our analysis different now than it wasgoed only a duo days ago. Yes, ter terms of the very short-term outlook (next duo of days) because of the reasons mentioned before. How about ter terms of the medium-term outlook? Not necessarily. Very first of all, it is fairly natural for the currency to keurig after a period of very strong appreciation. The question is if wij&rsquo,re eyeing enough signs that the tide has turned for a longer period of time. At the uur of writing, this doesn&rsquo,t seem to be the case. If wij measure the last rally from the November local bottom, Bitcoin hasn&rsquo,t even corrected 38.2% of it. This would correspond to Bitcoin at $14,357 &ndash, not a open up from the current price but the currency is not there just yet. Because of the potentially very significant nature of the current price act, wij would actually choose to see Bitcoin below this level for a duo of days before considering hypothetical cut-offs. At the same time, it seems that if the currency is able to rebound from this level, wij might have yet another budge up on our arms. Presently, our opinion is that a stir down seems more probable but the situation is very risky.

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits’ employees and associates only. Spil such, it may prove wrong and be a subject to switch without notice. Opinions and analyses were based on gegevens available to authors of respective essays at the time of writing. Albeit the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not assure the accuracy or thoroughness of the gegevens or information reported. The opinions published above are neither an offerande strafgevangenis a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski’s, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided te thesis reports. Investing, trading and speculation ter any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits’ employees and affiliates spil well spil members of their families may have a brief or long position te any securities, including those mentioned te any of the reports or essays, and may make extra purchases and/or sales of those securities without notice.

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