Bitcoin, Ethereum, Litecoin: Price Analysis, October, 12
WIth hard fork coming close, how is the market responding?
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* All the market data is provided by the HitBTC exchange.
On the eve of the Bitcoin hard fork and reception of Bitcoin Gold, investors saw an opportunity to obtain extra profit and started to convert their assets into the market’s leading cryptocurrency. Bitcoin went up, breaking through the psychological level of $5,000. As a result, almost all altcoins have dropped in value and are currently at their minimum levels.
Japanese officials had decided to impose regulations on businessmen and investors, thus creating a good environment for startups and cryptocurrency trading. They’ve also made the decision to provide licenses to cryptocurrency stock exchanges, which has already had a positive impact on the crypto assets market.
- Bitcoin broke through the resistance level of $5,000. We now see a new all-time maximum and a possibility to go up to $5,200 and $5,500 levels.
- The $4,750 to $4,850 range can be considered the closest support level. It is where purchases with short-term speculative goals can be made. The estimated resistance level is at $5,500.
- Possible scenario: Bitcoin can achieve the $5,500 level, even $6,000, before investors obtain Bitcoin Gold on October 25. Another possible scenario - small correction to fix profits may reach the nearest support levels of $4,750.
Late last week, Ethereum developers had their last meeting before the Byzantium fork, to be held on October 17. Go Ethereum (Geth), their most popular client, has already issued its release. Developers and investors give optimistic forecasts about Ethereum’s future.
- Ethereum has been in a flat state for the past few days and is now traded in the $282 to $315 range. This is likely due to the market’s waiting for the news on the network implementation updates.
- A short-term uptrend has been observed since October 10. As soon as the price passes the $315 resistance level, it’ll target the $330 to $340 range. A strong support level is at the $280 level.
- Success or problems arising during the implementation of updates determine expectations and further forecasts for the cryptocurrency. As of now, however, the most probable scenario is the growth of the market’s second cryptocurrency in terms of capitalization.
- Litecoin reached $55 and, unable once again to break through this strong resistance, regained its last week’s level. It is now traded at $52.
- For LTC, we observe bearish moods, with sales slightly exceeding purchases.
A movement to the $42 to $45 support range is a very likely scenario, especially if Bitcoin shows local correction signs. An alternative, investors might return to LTC as a hedge asset. In this case, we might see rapid exit from the the past few weeks’ trading zone towards the $65 level. A break through the resistance zone on increased volumes will be one of the indicators.