Cryptocurrency price outlook 18 December 2019
Bitcoin’s Christmas crash
Bitcoin has lost 8 per cent of its value in one week of pre-christmas trading since 11 December, [charts from coinbase.com].
Bitcoin prices crashed particularly hard yesterday, 17 December, and are down more than 3.5 per cent ($350) in 24 hours.
One Bitcoin is now trading at $9,692 and could continue to slide if current trends continue.
Some analysts have pointed to investors cashing out coins before Christmas as a possible cause for the sharp price correction this week. There have been no major new regulatory or market developments that have clearly impacted on market sentiment this week.
Bitcoin has been in a long price slide for over 6 months, since mid-2019 but is still 83 per cent up on the price 12 months ago.
Bitcoin is “the only game in town”
The United Kingdom’s oldest crypto exchange announced yesterday that it will delist all cryptos except Bitcoin from January 2020.
Coinfloor’s boss Obi Nwosu told Cointelegraph this week that no other crypto except Bitcoin is “proven.”
Bitcoin is the “only game in town,” said Mr Nwosu and achieving its mission of providing a new form of storing value, or digital gold.
Mr Nwosu said the Ethereum network’s transition to Ethereum 2.0 in January 2020 shows that Ethereum is not a proven cryptocurrency said Mr Nwosu.
When Coinfloor goes Bitcoin-only in January, customers will not be able to deposit, purchase or sell Ether on the platform but they can withdraw or store Ether for an “administrative fee.”
Mr Nwosu said Bitcoin is “way ahead of everyone else” and he expects more cypto exchanges to follow him and become Bitcoin-only in the very near future.
Is now the time to buy or sell Bitcoin?
Bitcoin prices hit $18,175 on 10 July 2019 but have in decline ever since. Bitcoin prices are now below ten thousand Aussie dollars. The decline has accelerated in pre-christmas trading this week.
However the current market is not all doom and gloom for Bitcoin fans.
Bitcoin is on a long-term upward trend with the current bear market just ‘noise,’ said investment writer Clem Chambers in Forbes.com last month.
“Bitcoin is in a bear market,” wrote Mr Chambers.
“That’s bad news if you’re a short-term holder and good news if you’re a long-term acquirer.
“[long term] I believe the direction is up and significantly up but for now, in the short term, it’s down,” said Mr Chambers.
200 day moving averages of the Bitcoin price chart indicate that overall the Bitcoin price is still trending up long term, argued Mr Chambers. While the current trend is down, long term investors can see this time an opportunity he said.
“To reverse this trend will not take much,” said Mr Chambers.
“But to do so will need a catalyst and there is none in sight at the moment.
“Instead there looks to be a holder’s opportunity to get some cheap coins.”
Crypto price crash impacts Ether, Ripple, BCH and Litecoin
Ethereum prices have fallen almost 15 per cent this week. Ether, along with almost all other cryptocurrencies, looks to be locked into a long-term bear market trend.
Ether is now trading at $181, down $30 in one week.
Ether crashed more than 10 per cent yesterday and led the entire crypto market down. The Ether crash began two minutes before the Bitcoin slide yesterday (16/12/2019) according to @HsakaTrades, a leading crypto trading expert on Twitter.
Why are crypto prices crashing?
A new report in Bloomberg quotes a blockchain forensics firm, Chainalysis, who claim that a giant Chinese crypto Ponzi scheme has been dumping large volumes of cryptocurrency assets. This has been driving cryptocurrency prices down over the last few months of 2019.
Other analysts says a shortage of crypto buyers in the Christmas season is driving down prices as investors cash in for holidays.
NewsBTC are now predicting a recovery in crypto prices in the new year as sellers pull back.
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