Looking back at 2017, it's needless to say that cryptocurrency exceeded the wildest predictions in returns.
It generated much investor frenzy across the globe although their legitimacy as a 'real' currency and investment option has always been a subject of debates. Whichever side we take, it's obvious that cryptocurrencies have made their mark in financial markets across the globe.
Bitcoin accounts for about 44% of the comprehensive market cap of digital currencies. It is the biggest win for investors. Created in 2009, it's still the most widely-accepted and most popular crypto.
A few of the latecomers such as Ripple, Ethereum and Litecoin, have had achievements of their own.
Let's take a look at how the top four coins performed in 2017.
There was a massive pullback or price correction so to speak by the fourth week of December. -Not only for Bitcoin but we saw a sharp decline to key support levels in most cryptocurrencies before the year ended.
Bitcoin
Bitcoin reached the 61% Fibonacci retracement level around $11,200. On Tuesdayโs trading session, Bitcoin price formed a bullish engulfing chart-pattern reaching for the 23% Fibonacci retracement level of $16,427. On the 4-hour chart, BTC/USD has just broken above the Ichimoku cloud. The Kijun line has also crossed above the Tenkan line.
Ripple
Back in May, CoinMarketCap charts showed that ripple climbed above ethereum and took the second spot. Back then, ripple was only priced at about 36c. In December, Ripple price soared above the $1.00 level and traded as high as $1.24 against the US Dollar in the last week of the month. It's nearly 56 percent growth and it becomes the top-two cryptocurrency by market cap.
The bullish trend continued to date and it hit an all-time high of less than $3.00. Despite minor price corrections, there has been a solid rise in Ripple value beyond the $1.00 mark.
Ethereum
Ethereum reached the same Fibonacci 61% level as Bitcoin, at around $470. LTC/USD has also broken above the Ichimoku cloud on the 4-hour setup. However, it appears to be struggling to break the $755 resistance level.
Bitcoin Cash
Bitcoin cash was born in August 2017 out of a fork in the Bitcoin blockchain. The main difference between Bitcoin and Bitcoin Cash is block size. An upgrade in the block size was the main reason for the fork. Some folks advised against trading across forks but apparently, as bitcoin dipped in November, Bitcoin Cash climbed, suggesting that interest was diverted for some time and people traded bitcoins for bitcoin cash.
All of these cryptocurrencies offset a big portion of the losses within a day, and are still climbing back up to key psychological milestone levels.
What do pro-cryptocurrency fellows say?
Cryptocurrencies like bitcoin, bulls say, will continue to be an asset class classified as digital assets, similar to stocks, precious metals, bonds or real estate.
What do naysayers say in general?
On the other hand, the bears are still concerned about the challenges in regulation affecting cryptocurrencies, believing that being unregulated or lack of regulation will probably cause a downfall.
Whatโs coming?
We have already seen at least one huge pullback but it should not be a major concern. This doesnโt necessarily mean we wonโt experience any more record-breaking highs across the board in 2018. We may also possibly see another massive pullback after an all-time high, whichever comes first.
Bitcoin might dive to as low as $6,000 and climb to as high as $50,000. - It's everyone's guess.
Litecoin could dip to the $100 level and exceed $1,000 whichever comes first.
Ethereum may see a correction around $359 and move up towards $1,700 in 2018.
Investing in cryptocurrencies is both exciting and high risk at the same time. For beginners, I picked the simplest of advice:
Classic technique: Buy low, sell high. Study the price trend. It is inherently riskier if you are at the highest point in the past 24 hours or so. It might seem logical to buy as the price starts to dip, but buying after a dip while at a new high filled with excitement is a little more like irrational hype. It goes without saying: โbuy the dipsโ and โthe best time to buy is when you see blood in the streets, even if it includes your own.โ
You can't โbuy the dipsโ if you already went "all-in". That's obvious. So, consider always having some money left to the side for use in case of an unforeseen downturn. Even if you want to invest everything in crypto, leave yourself at least some backup funds just in case. If you already went all in and the price takes a huge dive, there'll be limited options left for you on the table.
In my next blog, we will review other altcoins at the top of the list.
Please upvote, resteem and follow me, thank you.
Bitcoin is prize very up .it is great crypto curency.
Some analyst says it's a bubble and not safe for investment what do you say about it
I said before that it's an enormous, resilient,e expensive bubble, but I myself am starting to doubt it. It seems more than a bubble because bitcoin serves a purpose. The number of transactions/volume will never go down to zero because not everyone who keeps bitcoins is an investor. There are those who just use it for sending money. In that case, for as long as you exchange your bitcoin to fiat as soon as you receive it, you minimize the potential loss. - This means there will still be volume in the market although investors might quit big-time.
Good info, thanks for sharing :)
Certainly Bitcoin was a revelation in 2017, however, I see ethereum making a huge statement in 2018
Since bitcoin started trading on the futures market it has been much good to me anymore plus when you consider the transaction fee it makes you wanna jump off the roof. Then ripple has looked good as I hear it's not decentralised I don't think I can over look that fact. Well for me I would say eth and ltc would be the coins of 2018 and am gonna hold them
Resteemed and followed
Thanks for your comment and additional information.
Iโll agree with new highs in all those coins you mentioned, and your right about not going all in, buy a little here and there just in case it dives you can wait until it drops, but trying to chase it when itโs already hitting crazy highs is a bit risky, like cardano, it just went crazy!
But crypto is making many wealthy!!
Yeah, it's easy to get burned in the chase.
Ripple reached the mountain top. Maybe Ripple will want to return.
I just followed you cause your posts seems to be informative post you
can find similar crypto news on my steemit that might be productive
for you too...
@reewy
Thanks, I sure will.
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