Bitcoin Steadies as it Continues to go Mainstream

It’s been a nervous start to the day for Bitcoin, which managed to recover from an intraday low $16,100 to $17,020.68 at the time of writing.

The $1,000 move may be considered significant for some, but the choppiness that raised concerns over the outlook for Bitcoin on Wednesday continues to be seen this morning. There’s plenty of support at sub-$17,000, but any attempts to move beyond today’s intraday high $17,281.17 have been thwarted thus far.

On the futures market, CME Bitcoin January future’s contract is down $20 to $17,020 adding downward pressure on Bitcoin, though there is some support with the March contract up $300 to $17,600.

With the markets looking to Bitcoin futures for direction, any break out beyond today’s intraday high $17,281.17 is going to be a challenge until the Bitcoin bears ease up on the reins in the futures market

Bitcoin’s upside through the early part of the day is certainly not as a result of any positive market news. We’ve heard from a U.S think tank attributing Bitcoin’s 2017 rally to terrorists investing into the currency, benefitting from its anonymity, while the North Korean’s have also been accused of hacking and stealing Bitcoins from a South Korean Bitcoin exchange

Concerns over both certainly raises the possibility of governments around the world to pressure exchanges to fall under the scrutiny of regulators in the interest of national security. If the think tanks are right, then we would expect any regulatory oversight to have a material impact on Bitcoin.

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The Bitcoin market is certainly on a rapid evolutionary path that has already resulted in the launch of the Cboe and CME futures markets. There may have been some disappointment over the volumes seen in the futures markets, but the launch has now led to exchange traded funds and hedge funds proceed on launching Bitcoin focused investment vehicles aimed at investors looking for an actively managed Bitcoin investment.

The New York Stock Exchange was reported to have requested to list 2 ProShares Bitcoin ETFs, which will be tracking the Bitcoin futures market. The markets had been anticipating the filing following the launch of the CME Group’s Bitcoin futures contracts on Monday, with one of the ETFs being Bitcoin futures long, while the other will be shorting Bitcoin futures.

Following in the footsteps of the ETFs will be the hedge funds that are also looking to get in on the action, following substantial gains across the first to market hedge funds that took on Bitcoin ahead of this year’s rally.

Sadly for those looking for significant inflows into Bitcoin off the back of increased interest from exchange traded funds and hedge funds, the fact that they will be gaining exposure through the futures markets will have a materially different effect on Bitcoin’s direction than if they were investing directly and, while we continue to hear plenty of bullish calls for Bitcoin to rally to $50,000 and beyond, speculative investors looking to bring down Bitcoin could hamper those looking for a retirement plan out of Bitcoin 2018.

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Bitcoin Cash, Litecoin and Ripple HODL – Daily Analysis – 21/12/17

Bitcoin Cash Holds after a Rampant Wednesday

Not only did Bitcoin Cash break through $3,000 on Wednesday, but it also broke into $4,000 levels in what was a decisive moment for Bitcoin’s August offshoot.

Off the back of Wednesday’s rally, we’ve seen Bitcoin Cash ease back in the early part of the day, down 7.95% to $3,414, as some degree of profit taking hits Bitcoin Cash, with investors looking for which cryptocurrency is going to rally next.

This morning’s decline comes alongside Bitcoin recovering to $17,150 at the time of writing, with the push and pull relationship between the two on show this week.

For the day ahead, we will expect some consolidation as the markets look for direction through the day, which could be hinged on sentiment towards Bitcoin through the morning.

BCHUSD211217

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Litecoin in Recovery Mode

It’s been a tough week for Litecoin, with Bitcoin’s troubles contributing to Litecoin’s fall from this week’s $380 high to a $275 low on Wednesday.

Things are a little brighter this morning, with Litecoin up 7.07% to $327.19 at the time of writing, the upside coming off the back of Bitcoin’s recovery to $17,000 levels through the morning.

For Litecoin to have any chance of competing against Ripple’s gains this morning however, we’re going to need to see Litecoin push through to $350 levels this afternoon but, with Bitcoin treading water after its early recovery, Litecoin could face quite a lot of resistance through the day.

On the news front, the founder of Litecoin was reported to have sold his Litecoins citing conflict of interest, which should be taken as a positive, though some may question whether the Litecoin founder knows something we don’t…

LTCUSD 211217

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Ripple Takes the Spotlight and looks to be the HODL of the Day

Ripple may have been on the back foot on Wednesday, falling to low-$0.63 levels, but it’s a very different story this morning, with Ripple surging 26.89% to $0.912 at the time of writing.

The dip and pop story that carried Bitcoin to just shy of $20,000 looks to have been passed on to a number of other cryptocurrencies, as investors face the decision of when to go in and when to jump ship. The uncertainty over whether the cryptocurrencies can rally beyond a few hours has certainly contributed to the volatility seen in the likes of Ripple.

Today’s intraday high $1.02048 is a significant landmark for the currency that was languishing at sub-$0.23 levels earlier in the month. The pullback from $1.0 levels was always likely and could see Ripple struggle to hold on to $0.90 levels if it doesn’t manage to bounce back to $0.95s in the early part of the day.

There’s certainly nothing wrong with Ripple’s current price, when considering today’s intraday high, for investors looking to get onto the Ripple bandwagon, but many will likely be sitting on the side lines hoping and waiting for the next dip.

XRPUSD 211217

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Bitcoin Gold DASH and Monero Price Forecast December 21, 2017, Technical Analysis

Bitcoin Gold

Bitcoin Gold rally during the trading session on Wednesday, reaching as high as $420. This may be in reaction to the massive hack in South Korea for Bitcoin, as Youbit, a major South Korean exchange, was hacked to the point where it had to file for emergency bankruptcy. Because of this, an unknown amount of coins was stolen and seemed to be gone for good. This underlines a lot of the issues when it comes to Bitcoin, and the reaction of the markets suggests that people are trying to get away from that currency, least in the short term. This has been good for Bitcoin Gold so far. I believe that short-term pullbacks are buying opportunities, as there seems to be a significant amount of support at the $380 level.

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BTG/USD DASH USD and XMR USD Video 21.12.17

DASH/USD

DASH initially pulled back to the $1200 level and then exploded to the $1500 level during the day. I suspect that this is not only in reaction to the overall momentum and a break of a large, round, psychologically significant level, but also the previously mentioned hack in South Korea. Lately, this market has been very strong, and I think we will continue to see buyers jump into this market on dips. In fact, on the hourly chart, it looks as if were trying to find buying pressure of the $1400 level, and perhaps even trying to break above the $1500 level, allowing us to go much higher.

DASH/USD daily chart, December 21, 2017
DASH/USD daily chart, December 21, 2017

XMR/USD

Monero also broke above a psychologically significant area, clearing the $400 level, and reaching as high as 440 during the day. We have pulled back since then, but it looks as if $400 is going to offer a nice buying opportunity, and the market should continue to go higher, perhaps reaching the next major round number, the $500 handle. That’s an area where I would expect to see a lot more noise, so I think that is probably the “ceiling” in the short term. However, we obviously have a lot of bullish pressure, so I like buying short-term dips as a value play in a market that I think has much farther to go. Monero has been one of the better-looking charts for some time.

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Monero/USD daily Chart, December 21, 2017
Monero/USD daily Chart, December 21, 2017

BTC/USD Price Forecast December 21, 2017, Technical Analysis

Bitcoin continues to be very volatile, and with the 20 SMA on the hourly chart rolling negative, it looks as if we’re going to test the $16,000 level and how resilient it is as support. A breakdown below there sends this market to the $15,000 level, an area that I think is important. A lot of the negativity would be due to Youbit, a South Korean exchange that has been hacked yet again, losing roughly 20% of its client’s coins. In fact, the loss was strong enough to force the exchange to go into bankruptcy overnight. Investigators are still trying to figure out who hacked the exchange, which is becoming a much more dangerous scenario, as the value of Bitcoin has made hacking much more profitable than it once was.

BTC/USD Video 21.12.17

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Beyond that, Bitcoin Cash is being investigated for insider trading. Because of this, the cryptocurrency markets, in general, are struggling a bit, and I think that the likelihood of liquidity being an issue over the next couple of days will probably dampen some of the enthusiasm. This is not the first time in exchange has been crushed through theft, and it highlights a lot of the issues with cryptocurrencies. One of the biggest advantages that proponents preach is safety, but clearly, anything can be hacked, as we are learning.

In general, the uptrend continues, but every time something like this happens one would have to be a bit concerned. If we do rally from here, I think somewhere around $18,000 we will see sellers step back into the market. If we break down below the $15,000 level, I think $13,000 would be targeted next. Expect volatility, the volume is going to be lower than usual, and of course, fear jumping into the market doesn’t help the situation either.

Bitcoin and Ethereum Price Forecast – BTC Likely to Move Higher

There has not been much by way of developments in the bitcoin industry over the last 24 hours but what has been noticeable is the fact that the bitcoin prices continue to be weak as we write this. We had mentioned the same in our forecasts over the last few days that the attention has shifted away from the BTC industry to the other coins and this is bound to have an effect on the bitcoin market. On the other hand, the bulls should be able to draw some comfort from the fact that, looking at the chart, the worst seems to be over and there has been a nice double bottom with a ping bar on the 4-hour chart which should point to a bounce in the prices over the next day or so.

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Prices Bounce Off Support

The prices trade just below the $17000 region as of this writing and we would not be surprised to see the prices near the $18000 region by the end of the day. But irrespective of what happens in the bitcoin market and its prices in the short term, we believe that there has been some fundamental changes in the market over the last few weeks and this should keep the BTC prices under pressure over the medium term. This should in turn force the investors and the speculators to turn towards the other coins during this period spurring their price growth.

Bitcoin 4H
Bitcoin 4H

Ethereum is likely to be one of those that is going to get benefitted by all the attention on the alt coins. In fact, it is in a prime position to take advantage of this shift as it is generally considered as the second best coin in the crypto world and it has better fundamentals than even bitcoin. This is the reason why we have been seeing the ETH prices continue to rise over the last few weeks and we have seen the prices rise towards the $800 region and further during this period.

Forecast

Looking ahead to the rest of the day, expect the BTC prices to continue to move higher during the course of the day which should temporarily shift the focus away from the ETH market and make it to consolidate and range over the next 24 hours.

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A Basic Introduction to Ripple and How to Buy XRP?

What is Ripple?

Ripple was founded in 2012 in order to fill a need in the international business market for a fast and efficient way to transfer funds from one country to another. The goal of Ripple is to establish a blockchain that will be used to verify financial transactions. This strategy has the potential to remake the entire global financial system, and the Ripple cryptocurrency – also called Ripple but technically named XRP – is an integral part of this goal.

The Situation

It seems incredible that when Amazon can promise same-day delivery that it can still take 3 to 5 business days to transfer money between countries. Globalization has remade supply chains and the manufacturing process, but the financial system remains stuck at an earlier time.

That system is known as SWIFT – the Society for Worldwide Interbank Financial Telecommunications. According to their website, SWIFT is a cooperative founded in the 1970’s and did a tremendous amount of work in standardizing the format and communication of international monetary transfers. It’s easy to forget how difficult their task was in the era before fax machines.

Unfortunately, as a cooperative SWIFT has responded slowly to changes in technology. Large corporations react more slowly than small companies, and cooperatives of large corporations move even slower. The result is an out-of-date international financial network that does not adequately utilize technology or meet the needs of the modern, global economy.

How to Buy XRP?

Buying ripple can be done by two main options. The first option being via cryptocurrency exchanges such as CEX.IO (Ripple will be available soon) and Kraken.

How to Buy XRP in 4 Easy Steps

Step 1 – Get XRP Wallet

In order to buy Ripple via exchanges, you will have to open a digital wallet prior to the purchase. You can use websites such Gatehub.net to open a digital wallet.

Step 2 – Open an Account with an Exchange

The next step will be to open an account in one of the exchanges that support Ripple (XRP). Currently, not many exchanges support Ripple and the demand for the crypto are increasing constantly. Two major cryptocurrencies exchanges that support Ripple (XRP ) are CEX.IO and Changelly.

Note that if you wish to speculate the price of Ripple and do not own the coin, you can turn to Plus500 *(72% of retail CFD accounts lose money, Availability subject to regulation) which provides you CFD’s trading on various cryptocurrencies as well as Ripple.

Step 3 – Verify your Account 

Cryptocurrencies exchanges require new users to verify their account prior any trading activity.  Therefore, Following your account registration, you must verify your details in order to continue the process.

Step 4 – Buy XRP with Fiat Currency

That’s it, now you can log in to your exchange account, search for XRP/USD or XRP/BTC, XRP/XBT and buy the coin. Following the purchase, withdraw your Ripple (XRP) to the digital wallet you opened at the beginning of the process.

The other method being via brokers that provide a contract for differences (CFD’s). Currently, not all exchanges provide the opportunity to trade Ripple, however, Plus500 allows traders and investors to buy and sell Ripple easily. Sign in to Plus500 *(72% of retail CFD accounts lose money), deposit funds via bank transfer or credit card and you can trade Ripple either from your desktop or mobile app.

XRP Exchanges

Ripple only sells XRP to banks and institutions, but individual investors can find it on a variety of cryptocurrency exchanges.  It can be purchased with other cryptocurrencies or with US dollars. The exchanges have different cost structures and pricing policies, so comparison shopping is highly recommended. There is also a useful website that compile lists of exchanges with user ratings.

Keep in mind that the acceptance of XRP by the cryptocurrency community at large is going through significant change as 2017 comes to a close. Exchanges are adding XRP as demand increases, and pricing policies are also changing quickly.  Buyers and sellers should check the status of XRP frequently to keep up to date on the situation.

XRP is at the vanguard of the new era of cryptocurrency. Ripple has applied new blockchain technology to an existing structural bottleneck in a way that has the potential to remake the global financial system. They have proceeded slowly and methodically with little fanfare for most of the process. That has ended, and now individual investors are joining in.

Ripple – A Company and a Blockchain

Ripple was founded to develop a cost-effective, secure solution to this problem.  Of course, as a private business, they hope to profit from that solution. This is one of the important distinctions between Ripple and the promoters of many other cryptocurrencies. Ripple is in the money business to make money.

This means that the idea of decentralized control that is at the heart of Bitcoin is not part of the Ripple infrastructure. The company raised the seed capital through traditional channels and not through an Initial Coin Offering (ICO). This standard business structure gives Ripple greater creditability with its primary user base and strongly suggests that it has a real competitive advantage over Bitcoin.

Ripple created RippleNet, the world’s first commercially operational blockchain network. This decentralized network is also commonly referred to as Ripple.  Members use the network to validate important information and transfer money around the world. It is much more efficient than the SWIFT system and is growing quickly.

XRP – The Cryptocurrency

XRP is the cryptocurrency that Ripple (the company) created to operate on Ripple (the blockchain). The basic idea is that using a common unit of currency makes the transactions easier to record. Anyone transferring money converts their native currency to XRP and transfers that. The recipient then converts XRP into their native currency. XRP simply functions as a common accounting entry.

This approach has several benefits. First, it disconnects the transfer itself from the currency markets. It treats the movement of value as a distinct event. Ripple and others refer to this as the creation of an “Internet of Value”.  The use of an independent medium of exchange also separates the transfer from the market for US dollars, which are still the most commonly used currency in international trade.

In addition, the use of a cryptocurrency makes it possible to compensate the blockchain members for recording the transactions and maintaining the blockchain. This, in turn, attracts other members to the network. So long as the transaction fees are lower than the alternative forms of transferring money, compensating network members through XRP is a financial “win-win”.

The Benefits of XRP

The potential benefits of the Ripple network to financial institutions go beyond the ability to earn additional revenue by maintaining the blockchain. In fact, that is a very small part of the overall equation. The primary benefits are the speed at which transactions can be settled, the lower cost and the absolute certainty of the transfer.

The benefit of reducing the time it takes to securely transfer money from days to seconds is obvious. Banks make money by lending it out, and capital tied up in transfers is a lost opportunity. Similarly, the benefit of lowering the cost of doing business is easy to understand. However, the certainty provided by the Ripple network is at least as significant to banks and financial institutions.

Banks and institutions “bounce checks”, just like people. Banks lose significant amounts of money on these failed transactions. In addition, banks lose their money on deposit with another bank in another country when that bank fails.  This is known as counter-party risk, and it is completely eliminated by the Ripple blockchain and the XRP cryptocurrency.

Ripple Success

These benefits have fueled acceptance of XRP and growth of RippleNet. The company has carefully nurtured this growth both by working with the banking establishment and by slowly expanding the blockchain. This nuanced approach by Ripple shows an intimate understanding of the industry that they are trying to remake. Banking is a staid, traditional business that does not respond well to be being pushed.

Banks and financial institutions are responding positively to the thoughtful approach. The Mitsubishi UFJ Financial Group (MUFG), the fifth-largest bank in the world by total assets has signed on, as has American Express and the Royal Bank of Canada (RBC), Canada’s second-largest bank. The list is growing longer every day as Ripple gains credibility in a very conservative industry.

Ripple has also been able to attract top leaders from the financial and digital worlds. These experienced professionals have a diverse set of backgrounds but a common goal of creating a stable accepted and robust blockchain for the banking industry. Perhaps the best measure of success in this area is the hiring of former SWIFT Directors.  These individuals see a changing of the guard and want to be on the winning team.

XRP Price

These facts are vitally important not only to the success of Ripple but also to the value of XRP.  It is too easy to forget that it is the community of users that create market value for a cryptocurrency. Bitcoin skyrocketed in price because more investors became willing to use the coin as an investment. In exactly the same way a growing community of XRP users will determine the value of this coin.


However, this fundamental progress toward the ultimate goal of remaking international financial transactions is not responsible for the price spikes XRP has experienced in 2017. The price chart through mid-December shows the impact of cryptocurrency investors beginning to accept the core value proposition of XRP, or perhaps only trying to diversify their portfolios.

It is absolutely critical to understand that these new investors in XRP are not the primary focus of Ripple. Of course, any company likes to see their stock – or cryptocurrency go up in price, but these price charts which are a critical component of the analysis done by cryptocurrency traders are far less important to Ripple than the continued growth and acceptance of XRP in the banking industry.

XRP Value

These two markets, the institutional user and the individual investor, have very different definitions of “value”. The institutional market sees value in how XRP can be used in their business operations while the individual investors see the price appreciation described in the previous section as the primary source of value. Currently, this group has no other use for XRP.

Ripple itself has another perspective that reflects both of these viewpoints. Because the primary focus of the company is on the institutional market, Ripple wants a value that is best suited to this user. In this sense what is most important is not the current market price of the cryptocurrency, but rather its price stability. More than anything and unlike other cryptos, Ripple wants an orderly market that is devoid of large spikes.

This is because the institutional user of XRP is indifferent to the actual market price of the coin. They are using it solely as a medium of exchange to transfer national fiat currency. Simply put, they do not care how many units of XRP they transfer, but they do care if the value of the XRP changes suddenly while they own the coin.

XRP Volatility

Ripple boasts that each transfer on RippleNet takes only 4 seconds to complete, but of course, the entire transaction from the purchase by the bank sending XRP to the liquidation by the receiving bank to their native fiat currency takes longer than that. This exposes the banks and financial institutions to unexpected gains or losses due to changes in the market price of XRP. Unacceptable losses will damage the use of the coin and RippleNet as a payment transfer system.

Fortunately for Ripple and the institutions, there are mitigating circumstances that make these large losses unlikely. First of all, each party to the transfer holds the risk for only a portion of the time. The risk of loss is transferred along with the cryptocurrency. If each party to the transfer is equally adept at buying or selling XRP, this fact evenly shares the risk between the two.

In addition, banks and financial institutions are accustomed to the risks of changes in currency values and have developed sophisticated methods of reducing it. As RippleNet grows, the ability of these institutions to quickly move into and out of XRP will also grow. Furthermore, there are separate companies that see an opportunity to profit from this volatility and who will ensure the bank against losses stemming from it.

XRP Supply

A large segment of individual investors also takes a buy and hold approach to XRP and is basically indifferent to volatility, other than the occasional sleepless night it can cause. Those investors who trade cryptocurrencies on an active basis actually see volatility as an opportunity to profit from the market. However, what all individual investors care about is the long-term increase in the market price of XRP.

These investors often rely very heavily on the basic law of supply and demand.  The “fixed supply” of Bitcoin is almost legendary in the cryptocurrency world as a driver of market price. Those who think supply is the main component of price view XRP as a problematic investment because Ripple, the company, has a monopoly on the production of XRP.

Keep in mind that Ripple is a private company and that XRP is a private cryptocurrency. There is no mining of XRP. Ripple has placed most of the supply of XRP in time lock contracts on RippleNet.  1 billion coins will be available for issue on the first of each month for the next 55 months. Ripple can choose to issue some or all of the coins with any unissued coins returned to a new time lock contract opened in 55 months.

XRP is a Centralized Coin

This active management of the supply of XRP is despised by cryptocurrency purists. Decentralized control of the currency is a very important philosophical part of Bitcoin, which allows individuals to create new coins. Centralized control by Ripple of the supply of XRP stands in complete opposition to this principle.  This is a fundamental difference that cannot be reconciled.

Many individual investors who are indifferent to these philosophical differences are also concerned about the time lock feature. They are concerned that Ripple will “dump” 1 billion XRP on to the market the first of every month, inundating the supply and driving down the price. From this very limited perspective, XRP looks like a bad investment, but it ignores the reality of the situation.

Ripple is committed to a stable price of XRP because it is focused on the institutional market. The last thing that Ripple wants is those institutional customers to suffer a price drop while using XRP on RippleNet. They also do not want their institutional users to avoid using the network around the first of each month. In addition, the company profits from the sale of XRP and can use the proceeds to finance growth.

The Ominous Bitcoin Tumble and Bitcoin Cash Rally

Bitcoin has hit the news wires once more this morning, though for the wrong reasons, with Bitcoin tumbling to an intraday low of $15,800 and even lower on some exchanges, before recovering to $16,740 at the time of writing. The day’s 5.42% fall to $16,740 may not sound like much in percentage terms, with the cryptocurrencies frequently moving by such margins on a daily basis. The ominous decline to sub-$16,000 levels could be a warning sign of worse things to come, however.

Within the more mature asset classes, we traditionally see larger price fluctuations as a rally begins to run out of steam and Bitcoin has certainly been choppy in recent days, with price fluctuations in the thousands between which there has been some lengthy sideways movements.

The downward pressure on Bitcoin can be attributed to a number of factors.

We’ve heard plenty of chatter in the cryptocurrency community of leading players in the crypto markets pulling out of Bitcoin in favour of Bitcoin Cash. The reason for the shift being linked to Bitcoin’s blockchain technology and issues faced on the Bitcoin network including transaction speeds and stability.

While many had hoped that the launch of Bitcoin futures by the Cboe and CME exchanges would spur a rally to beyond $20,000, the opposite looks to have occurred. Bad press and a more efficient way for the Bitcoin bears to take short positions against Bitcoin have led to Bitcoin’s futures contracts for January, February and March expiry all taking a dive, with the March CME contract down $1,415 this morning to $17,000. January’s contract is not doing too much better, down $885 to $17,300 at the time of writing.


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Some may take comfort in the fact that the contract values remain above Bitcoin’s current price, but the very fact that the Bitcoin bears are beginning to influence and in a significant way, is an ominous sign for Bitcoin, with investors clearly taking cues from the futures market.

On the CME Bitcoin Futures Exchange, January’s contract hit an intraday low of $15,835 before recovering to $17,300 at the time of the article.

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Is this the beginning of the end for Bitcoin and those hoping for Bitcoin to make a move towards the more exuberant forecasts that have been made of late?

It’s too early to call, but the choppiness at the top end is one to be cautious with and when considering the fact that there are alternatives to Bitcoin, there’s no reason for investors to hold on to Bitcoin as the risks of a greater fall rises by the hour.

Bitcoin Cash may have been in the shadows of big brother since the August hard fork, but the media frenzy appears to have changed tune, with Bitcoin Cash now beginning to grab the headlines. The cryptomarket’s larger exchanges, including Coinbase, have begun to offer Bitcoin Cash on their exchanges in recent days and volumes have surged. Bitcoin Cash’s price has also jumped, with Bitcoin Cash up 24.56% $3,325.2 for the day, off slightly from an intraday high of $3,676.

Bitcoin Gold has also taken advantage of Bitcoin’s woes, rising by 19.19% to $377.73 at the time of writing.

When considering the fact that the other major cryptocurrencies are sitting in the red through the early part of the day, Bitcoin Cash and Bitcoin Gold’s intraday gains are all the more poignant.

It’s certainly going to be an interesting few days ahead and if Bitcoin’s lows continue to go lower, we could see Bitcoin’s offshoots take over. Following the inclusion of Bitcoin Cash on the Coinbase exchange, trading had to be suspended, with the exchange reporting that the last quoted price had hit a high of $9,500. That’s more than $6,000 above current levels and reflective of the surge in demand and what may well lie ahead for Bitcoin Cash and the faster transaction speeds offered.

There’s a long way to go for Bitcoin Cash, with businesses needing to recognise Bitcoin Cash as an alternative payment system. Hashrates will also need to be on the rise, with miners needing to verify transactions.

Ultimately, it’s reasonable to assume that both of these are likely to happen, particularly if Bitcoin Cash continues to take the markets by storm and the Bitcoin Cash network remains significantly more stable, with faster transaction speeds.

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EURUSD with a major buy signal. Bitcoin, on the other hand, is doing quite the opposite

Bitcoin is suffering another bearish correction. Been there, done that. So far, in the past three days, the price declined over 3000 USD. As for the potential targets for the current downswing, the 14k support seems reasonable.

Dax performed really good in the few previous days. We defended the 12900 support and broke the 13190 resistance. Currently, e are testing the last one as the closest support. If the buyers think about the new long-term highs before Christmas, they need to defend this support today.

The last one is the EURUSD, which made a nice upswing yesterday, triggering the mid-term buy signal. The price broke the upper line of the flag, 1.1810 horizontal resistance and the neckline of the iH&S formation. All that is giving us a strong positive sentiment towards the European currency.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

Nervous Investors React with Subdued Trading, Bitcoin Crashes 15%

The U.K will conduct Financial Stability hearings today with BoE Governor Carney making a statement.

Apple Shares Take a Hit, Political Winds Create Tension for Wall Street

The tax reform package will have to be re-voted on by Congress today after the Senate rejected the bill which the House of Representatives presented. However, it appears the promised legislation is not in jeopardy. Wall Street saw its gains evaporate late in its trading session yesterday as the nervous political winds created tension in the market. And Apple’s shares took a hit yesterday on a negative report from a well-respected analyst.

Bitcoin Prices Plunge after Record High, Bitcoin Cash Rise 50%

Bitcoin prices dropped sharply on Tuesday morning as investors turn to other cryptos. Bitcoin cash has been the story of the day so far as it rises 50% to trade at $3517 as of 8:00 GMT. Bitcoin Gold is trading at $435.62, up 28%.

Japan Data Meets Target and BoJ is Tomorrow, Poor New Zealand Data

The All Industries Activity report from Japan met it expectations earlier today. And the Nikkei Index has put in slight gains. New Zealand’s economic troubles continued to mount with disappointing Current Account and Trade Balance figures. Tomorrow the Bank of Japan will release its monthly Monetary Policy Statement and conduct a Press Conference with BoJ Governor Kuroda taking questions.

Weidmann Speaking in Germany, U.K Treasury Conducting Hearing

Even as German Business Climate numbers turned in a disappointing report on Tuesday, the Euro was able to maintain its short-term momentum and put in a solid gain against the U.S Dollar. The European currency is above 1.18.  German Bundesbank President Weidmann is speaking today. And in the U.K, a Financial Stability hearing will take place in which the Bank of England will participate.

Notoriously Turbulent Past Two Months, Investors Attracted to Gold

Investors have found themselves attracted to Gold early this week and the commodity has held onto its gains as it trades near 1263.00 U.S Dollars an ounce. The precious metal has been notoriously turbulent the past two months and traders need to be careful if they are looking for more upside value.

Financial Stability Statement for U.K, Crude Oil Supply Numbers in U.S

Mark Carney’s statement on U.K Financial Stability will begin at 13:15 GMT.

  • 13:15 PM GMT U.K, BoE Governor Mark Carney Speaking
  • 15::00 PM GMT U.S., Existing Home Sales
  • 15:30 PM GMT U.S., Crude Oil Inventories

Yaron Mazor is a senior analyst at SuperTraderTV.

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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 20/12/17

Bitcoin Cash Breaks the $3,000 Barrier and Climbing

What a week for Bitcoin Cash and it’s just got better this morning, with gains of 20.3% to hit $3,211 at the time of writing.

It’s all about Bitcoin and investors are searching for alternatives, with the Bitcoin futures markets having done little by way of support to Bitcoin Cash’s big brother.

Bitcoin’s woes have certainly fuelled the Bitcoin Cash fire and we could be seeing a changing of the guards, with prominent members of the cryptoworld continuing to talk down Bitcoin’s outlook.

As we saw last week, Bitcoin’s network has seen some instability of late. Concerns over transaction speeds have done their rounds and with it has come an increased acceptance of Bitcoin Cash across the leading cryptocurrency exchanges.

The very fact that the crypto exchanges are changing their stance on Bitcoin Cash, with many exchanges having held back from allowing Bitcoin Cash trading following the August fork, suggests that the demand is now there.

For Bitcoin Cash to really put some pressure on big brother, there’s going to need to be increased attention from miners that are needed to verify the transactions, with Bitcoin Cash also needing to see a shift in acceptance as an alternative payment system within the business community.

With such heavy gains in the early part of the day, the rising interest in Bitcoin Cash could see more investors switching out of Bitcoin, providing further upside, with $3.500 the next target for Bitcoin Cash to then have a run towards $4,000 levels.

Comparing hashrates between Bitcoin and Bitcoin Cash this week, while Bitcoin hashrates continue to sit well above that of Bitcoin Cash, there has been some convergence, with miners looking for earnings potential. We are some way off the 12th November hashrate switch that saw Bitcoin Cash hashrates surpass Bitcoin’s, but a narrowing will provide further evidence that there has been a shift in sentiment of late.

BCHUSD201217

Litecoin in Retreat

It’s been a bad start to the day for Litecoin, with the recent volatility in Bitcoin seeming to have weighed on sentiment towards Bitcoin’s other competitor in the cryptoworld.

Investors can be quite unforgiving and with Bitcoin Cash the headline grabber this week, there’s just cause for many to be locking in recent Litecoin gains as the search continues for the cryptocurrency that can deliver 15,000 plus returns for next year

Litecoin’s failure to recapture $400 levels this week has contributed to the softer prices, though it’s too early to be completely writing off Litecoin.

On the price front, Litecoin is down 4.88% to 333.56, with Litecoin managing to recover from an intraday low $275.01. For the day ahead, while we expect support at sub-$300 levels, another move towards today’s intraday low could see Litecoin struggle to recover losses for a 2nd time. We’re going to need to see $380 levels for investors to expect another run at $400, which hasn’t been touched for a week now.

LTCUSD 201217

Litecoin Chart by Trading View

Ripple’s fall from Grace

Ripple’s start to the day has not been much better this morning, with prices having tumbled to an intraday low $0.63437 before a partial recovery.

There’s been little incentive for the markets to jump back into Ripple, following the escrow move by the Ripple team that saw prices hit $0.88. Announcements of seasoned financiers joining the Ripple board have also provided little upside, as the markets continue to consolidate on recent gains and find rallies elsewhere in the crypto world.

At the time of writing, Ripple was down 5.30% at $0.6946 and things could get a lot worse should sub-$0.68 support levels be tested for a 2nd time today. With only Bitcoin Cash in positive territory amongst the top 5 cryptocurrencies, one wonders how much of an impact the ever-increasing number of cryptocurrencies is having on the likes of Ripple.

XRPUSD 201217

Ripple Chart by Trading View

Bitcoin Gold DASH and Monero Price Forecast December 20, 2017, Technical Analysis

Bitcoin Gold

Bitcoin Gold fell significantly after initially trying to rally during the day on Tuesday, testing the $340 level above. By doing so, it looks as if the $300 level is being challenged as support. I think there is plenty of support just below, so it makes sense that we will try to bounce again. If we do bounce from here, I think will go looking towards the $340 handle. Otherwise, we could drift as low as the $280 level to look for support. This has been slow and gradual moved to the upside, and therefore I think that we will continue to see buyers coming in on dips, albeit in a slow and steady manner.

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BTG/USD DASH USD and XMR USD Video 20.12.17

DASH/USD

DASH rallied initially during the day as well but pulled back towards the $1100 level underneath. That was an area that was massively resistive, and now looks likely to offer significant support. I think that a bounce from there makes sense as it would continue the overt uptrend. I think that breaking above the $1250 level above signals that we are going to continue to go higher, and currently I think that the “floor” in the market is closer to the $1000 handle underneath. I believe that longer-term, cryptocurrencies will do well, but DASH, in particular, has done well over the last couple of weeks. Currently, I think that the idea of faster transactions in the cryptocurrency space is continuing to drive a lot of the bullish pressure here.

DASH/USD daily chart, December 20, 2017
DASH/USD daily chart, December 20, 2017

Monero

Monero rallied a bit during the trading session on Tuesday, reaching towards the $400 level but failing to hang on to the gains. We pulled back to the $350 handle, but now look as if we are trying to build a bit of a base here. We are oversold in the stochastic oscillator on the hourly chart, so I think that we are ready to continue the uptrend in general. Pulling back from the $400 level makes sense, and I think that this recent pullback is probably an opportunity to build up momentum to finally break out longer term. I think that happens, but this time year is going to be a little less liquid than others, and retail traders will probably be on the sidelines for the most part, as Christmas is next Monday. That being said, I don’t have any interest in shorting this market anytime soon.

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Monero/USD daily Chart, December 20, 2017
Monero/USD daily Chart, December 20, 2017

BTC/USD Price Forecast December 20, 2017, Technical Analysis

Bitcoin has gone sideways initially during the trading session on Tuesday, but then broke down towards the $18,000 handle. I think that the $17,000 level is probably more supportive, and the one thing that I would point out is that the candles with the most volume during the trading session were all negative. This is typically a very bearish sign, so I do not think that we will make a fresh, new high, Least, not in the short term. I anticipate that the market needs to find buyers underneath and perhaps a bit of value before it can turn around. Once it does, it’s almost a given that the market will be looking to reach the $20,000 handle. However, this is not a normal market, as we have gone 20 times in value to the upside, which is something that is positively not sustainable.

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BTC/USD Video 20.12.17

Because of this, I think that we will eventually see a significant selloff, and that will probably scare a lot of retail money out of the market, more than likely at a loss. That will speed up the panic, and we could see another 20% drop coming relatively soon. Because of this, I would be very careful with trading Bitcoin, especially considering that we are in the middle of the holiday season, which has a negative effect on volume and liquidity as well. This is a market that is thin, to begin with, so it’s possible that the moves could be even more exaggerated than usual in some type of geopolitical issue, liquidity event, or other headlines If we do rally from here, I still believe that is going to be difficult to break above $20,000 anytime soon. I believe that the next couple of days could be very quiet.

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Bitcoin and Ethereum Price Forecast – BTC Prices Crash as SegWit2X Raises Its Head Again

We have been repeatedly mentioning in many of our recent forecasts that the BTC prices are stalling and with the introduction of the BTC futures at the various exchanges, it brings into a whole new dimension of trading into the bitcoin market. It has also led many of the speculators to think twice before investing into BTC and many of them seem to have migrated to the alt coins as is evident from the way that their prices have been rising in the recent weeks. As more evidence of the same, we saw the BTC prices crash by more than 15% from their highs over the last 24 hours and the volatility continues in the market as of this writing.

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Prices Push Towards $17,000

The BTC prices trade just above tthe $17,000 region as of this writing and it is likely to remain under pressure in the short term. Though all of the factors above have contributed to the weakness in the BTC prices, the immediate trigger seems to be the new that the hard fork SegWit2X which had been dropped in November is likely to be revived and pushed through and this is likely to bring in a lot of uncertainty and confusion in the bitcoin industry once again. This is not liked by many of the traders and investors and they have begun to pull out of BTC and so far today, Bitcoin Cash seems to be the biggest beneficiary as it has been buoyed by news that it would be listed by Coinbase.

Bitcoin 4H
Bitcoin 4H

The ethereum market also seemed to bear the brunt of the fall in the BTC prices for sometime as it fell towards the $720 region but it has since managed to recover back and trades just below the $800 region as of this writing. We continue to believe that the ETH market has better fundamentals than most and hence believe in it for the medium term and the long term.

Forecast

Looking ahead to the rest of the market, we expect the BTC prices to continue to be under pressure as more news comes out regarding the Segwit2X hard fork and traders should be careful not to jump into this kind of volatility. ETH seems to be a much better bet at this point of time and this should benefit the ETH market in the short term as we look for new all time highs from the ETH prices.

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Altcoins In Green Zone, But Should We Expect A Correction?

QTUM, for example, a coin issued by the Quantum Foundation in Singapore that bridges Bitcoin and Ethereum protocols, jumped 66% in the last 24 hours to $71.38, with a market cap of $5.1 billion.

At the same time, Bitcoin seems to have encountered strong resistance near $19,000-$20,000, with even futures launches on the CME and Cboe exchanges failing to push the cryptocurrency beyond these levels. Nevertheless, and with limited shorting among traders, the drop in Bitcoin price wasn’t major. Investors seem to be waiting for signals regarding Bitcoin’s future, investing in other altcoins with a growing market cap for the time being.

So, the question remains: is this the calm before the storm, or are we on the brink of another stage of growth for the cryptocurrency market?


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The highest level reached by Zcash was $406 on June 20. After that, there was a period of long correction and a sideways trend, before its price doubled from $295 on December 11 to $593 on December 19.

Other altcoins are experiencing similar trends, with the previous dynamic and excessive speculative optimism in the market causing serious concerns that a possible correction period may arrive as a very unpleasant surprise for market participants on New Year’s Eve.

This article is written by FxPro

Negative Bitcoin Chatter on the Rise

The Day Before

We were expecting the Bitcoin world to pop upon the launch of CME Bitcoin futures on Monday, but instead it’s been more of a whimper for Bitcoin.

The moves through Monday were certainly not what the cryptomarkets are usually accustomed to, with Bitcoin moving within a relatively tight range for a cryptocurrency that normally sees more significant intraday moves.

Bitcoins failure to make another run at $20,000 was largely down to the fall in the January Bitcoin Futures price back down to $19,000 levels on the CME futures exchange, with the Cboe Bitcoin futures contract for January only just managing to hold on to $19,000 levels.

Adding to the pressure on Bitcoin this week has been an increase in speculation that Bitcoin may now be on the high side, price wise and may well see a correction as investors consider Bitcoin’s network stability, which has been tested of late.

Talk of members of the crypto fraternity shifting from Bitcoin to Bitcoin Cash won’t be doing Bitcoin any good and as we have seen before, once the negative chatter starts, it’s hard to stop it.

We’ve yet to see the futures markets reflect the negative sentiment, with January contracts on both exchanges sitting above Bitcoin’s current value. We have also seen the prices on the Cboe and CME futures exchanges converge, which will be good news, though when the smart money begins to pull down the Bitcoin futures prices remains to be seen, with investors playing it safe for now.

As it Stands

At the time of writing, Bitcoin is down 1.16% to $18,719.94 and is the only one of the top 5 in the red, with the rest of the pack finding some solid support through the early part of the day.

While Bitcoin has been on the back foot this morning, the futures markets have painted a different story, with the CME Group’s January contract up $320 to $19,420 and the Cboe contract up $325 to $19,380.

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For the Day Ahead

Sentiment towards what’s next for Bitcoin has been mixed and, while some are suggesting that the end is near, there are others in the market continuing to call for $400,000 or even $1,000,000 values down the road.

The recent failure to make a successful run through to $20,000 levels suggests that there may be more downside for Bitcoin through the week, though as has been the case on numerous occasions, investors are quick to jump in.

For Bitcoin to avoid a move back to sub-$18,000 levels, it’s going to need to return back to this morning’s intraday high $19,160.79.

For those looking towards the Bitcoin futures markets for  direction, it’s still early days and Bitcoin continues to be impacted more from market chatter than the futures markets, with the institutional money less sensitive to the speculative talk that has been doing the rounds this week.

Some have missed the rally and are looking to burst the bubble. It may not be the speculators that ultimately bring down the Bitcoin house however, with the sheer demand for Bitcoin and the unstable network that results considered to be a key risk to price stability.

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Bitcoin Cash, Litecoin and Ripple Daily Analysis – 19/12/17

Bitcoin Cash Breaks the $2,000 Barrier

Bitcoin Cash jumped from $1,840 to $2,318.7 in a matter of hours on Monday to hit a new record high, with the gains coming off the back of Bitcoin’s sideways moves through the day.

A number of factors are likely to have contributed to Bitcoin Cash’s new found lease of life including the fall in CME Bitcoin January Futures, which appears to have stifled Bitcoin’s 2017 record breaking runs.

Another driving force could also be increased speculation that Bitcoin could be getting ready for a tumble. Concerns over Bitcoin network stability have raised doubts over whether investors will stick with Bitcoin or begin switching out into Bitcoin Cash and Litecoin, which are considered to be Bitcoin’s main competitors.

We had seen the effects of transaction backlogs on Bitcoin’s valuations last week and another similar outage could see Bitcoin futures and Bitcoin fall back to sub-$17,000 levels. If the institutional money begins to show doubts over the future prospects of Bitcoin through the futures markets, things could get worse, which would be a positive for Bitcoin Cash.

At the time of writing, Bitcoin Cash is down 0.70% at $2,134, with Bitcoin also in the red, down 0.3% to $18,884.06.

Rising support for Bitcoin Cash should support $2,100 levels, with the next target for Bitcoin Cash being $2,500, which could be hit in the coming days should more prominent members of the cryptoworld step out in support of Bitcoin Cash.

BCHUSD191217

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Litecoin on the Move

Litecoin is on the move this morning, up 3.64% to $372.49 at the time of writing. Interestingly, the negative sentiment towards Bitcoin that seems to be doing its rounds this week has provided greater support for Litecoin over Bitcoin Cash, with investors holding on to Monday’s gains through the early part of today.

We could begin to see Litecoin benefitting from any downward pressure on the CME and Cboe Bitcoin futures prices, with today’s fall in Bitcoin providing strong support for Litecoin.

How the futures markets perform through the day will be of importance, as will be any further negative chatter on Bitcoin through the day. Breaking through $375 levels could give Litecoin a run at $400, which hasn’t been breached since 12th December.

LTCUSD 191217

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Ripple makes another splash

The cryptophoria has certainly gripped the major cryptocurrencies in recent weeks and Ripple is amongst them. We saw Ripple pull back from $0.88 record high going into the weekend, hitting the low $0.70s

The latest bounce in Bitcoin Cash and Litecoin has seen Ripple move back to $0.80 levels to lead the pack through the early part of the day, gaining 8.95% to $0.8226.

Sentiment towards Ripple’s blockchain technology is central to the continued support seen for Ripple at current levels. With Ripple having put into escrow the vast majority of their coins, market appetite for Ripple will likely build in the coming weeks, as investors search for viable blockchain technologies to park their money in. Bitcoin’s current levels and the issues faced on the Bitcoin network will be of particular support.

For the day ahead, we’ll need to see Ripple break past $0.88 levels to have a good run at $1.00, which would be quite a milestone when considering the fact that Ripple was priced at just $0.24 last week.

XRPUSD 191217

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Bitcoin Gold DASH and Monero Price Forecast December 19, 2017, Technical Analysis

Bitcoin Gold

Bitcoin Gold rally during the trading day on Monday, reaching above the $300 level. I think that the market is going to continue to go higher though, and as a Americans pick up the ball, looks like they are willing to try to drive to the upside. I think if we can break above the $315 level, the market is likely to go looking towards the $350 level above, which of course was resistance. Pullbacks at this point seem to be offering value, extending down to at least the $270 level.

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BTG/USD DASH USD and XMR USD Video 19.12.17

DASH

DASH/USD continues to go sideways in general, as the market is hovering just above the $1040 level. I think the $1000 level underneath continues to offer massive support, as it is a large, round, psychologically significant number. At this point, I believe it’s only a matter of time before we rally and go looking towards the $1200 level above. I think that every time we pull back, traders are willing to pick up the market and take advantage of what would be perceived value. However, we are getting close to the holidays, and we have not seen the crypto currency space trade during these illiquid times previously, least not with the type of volume that we have seen during most of the year. Because of this, I remain cautious and recommend that we only pick up little bits and pieces, adding slowly as the next major search might be after New Year’s Day.

DASH/USD daily chart, December 19, 2017
DASH/USD daily chart, December 19, 2017

Monero

Monero markets rallied a bit during the trading session on Monday, breaking towards the $350 level. I think that we are ready to break out to the upside and a move above the $360 level should send this market towards $400 longer-term, with a short-term barrier at the $375 level. I think that the market continues to be very bullish in general, and if you squint just hard enough, you can see a decent uptrend line on the hourly chart. I have no interest in shorting Monero, I believe there is a “hard floor” at the $300 level underneath.

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Monero/USD daily Chart, December 19, 2017
Monero/USD daily Chart, December 19, 2017

Bitcoin Price Forecast December 19, 2017, Technical Analysis

Bitcoin continues to be choppy but has settled down since the futures market has come to life. Because of this, I think that we are going to see Bitcoin come down and that the days of 20% gains are probably just about over. If we do get a 20% move during the day, it’s probably going to be a massive breakdown as we have been overbought for some time. However, during the short term, it’s likely that we will continue to grind sideways overall, and I think that the market is probably going to be a “buy on the dips” type of market, but for short-term trades only. If we break down below the $17,000 level, that could be a very negative sign, perhaps on the market back down to the $15,000 level.

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BTC/USD Video 19.12.17

In general, I think that it’s going to be difficult to break above the $20,000 level, but once we do it could be a very positive sign. There is a certain amount of psychological resistance with these large, round, psychologically significant numbers, as we had previously seen near the $10,000 handle. We may get a violent pullback, but I suspect in the end it went to be in a buying opportunity, offering a certain amount of value in a market that has been so bullish.

Volatility is going to continue to be an issue on short-term charts, but it does look like the momentum continues to be slowing down on the longer-term charts. I think Bitcoin has entered a phase where it might be more of an investment than a trade, something that we haven’t seen for the last year. Remember, the markets were down $19,000 below where we are now just a year ago. This is a market that has overextended the rally, and therefore the “easy money” has already been made. I believe that the market is going to continue to be noisy, and therefore it’s probably best to enter slowly, especially if you do not have a core position already. In fact, if you don’t have a core position, you might be better off waiting for the inevitable drop that we get occasionally.

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Bitcoin and Ethereum Price Forecast – BTC Stalls, ETH Zooms

As we have been saying in many of our forecasts over the last couple of weeks, the bitcoin prices seem to have stalled and they no longer seem to have the momentum that they used to have till the beginning of this month. That the introduction of futures in the CME and the CBOE has a role in this kind of price action is a matter of conjecture but the fact is that the introduction of futures has increased the ways by which the bitcoin market can be shorted and this is an effective tool to control its price rise. It is something that will be welcomed by top traders and big investors but it is something that is likely to be loathed by speculators who have now lost the ability to keep pushing the prices in one direction without much of an opposition.

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Prices Continue to Consolidate

We had also mentioned that the alt coins seem to have picked up the baton from the bitcoin market and that is why we are seeing them rising at a faster pace that the bitcoin prices. The BTC prices seem to be caught in a phase of consolidation between $18000 and $20000 and it continues to trade within this range over the last couple of weeks. We are also seeing increasing attempts at regulating the BTC market around the world as the attention grows on this industry. This is also likely to add pressure on the prices of bitcoin in the medium and long term.

Bitcoin 4H
Bitcoin 4H

The Ethereum market has benefited from this stalling in the prices of bitcoin and now we are seeing the ETH prices push through the $800 region during the course of the last 24 hours. We have been saying that the ETH market is pretty strong fundamentally and that if anything happens to the bitcoins, then ETH is likely to be the one to benefit the most.

Forecast

Looking ahead to the rest of the day, expect the consolidation to continue in the BTC market as the ETH market and its prices begin to pick up the pace over the next day or so. This kind of price action is likely to continue in the short term.

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How to Short Bitcoin – A Complete Guide

Buy low.  Sell high.  Just not necessarily in that order.

A simple example will show why this is the case. An investor borrows a Bitcoin from a friend and sells it at a price of $15,000. After the price drops to $10,000 the investor buys a Bitcoin back and returns it to the friend. This is a classic short sale, and the investor in the example made $5,000.

The most the investor could have made is $15,000 which would happen if Bitcoin became worthless. Of course, the risk is that the price of Bitcoin goes up and the investor has to buy it at a higher price in order to return it to the friend. Given the increase in price, there seems to be no practical limit to the amount that the investor could lose in the transaction.

Shorting Bitcoin Via Exchange

The first problem with implementing this strategy is finding someone who is willing to lend you the Bitcoin. Many exchanges offer this service which falls under the category of a “margin account”. Because you are borrowing something, there is an interest charge on the loan in addition to other transaction fees.

The terms of borrowing – how much you can borrow and what rate you will be charged – varies by exchange. The terms and the qualifications for a margin account are changing very quickly as the market for Bitcoin and cryptocurrencies, in general, continues to develop. Kraken reports margin fees of .01% for every 4 hours the trade is open, a time frame that demonstrates how quickly active traders open and close margin positions.

Investors interested in establishing a margin account for short selling need to do some serious research to find the terms that best suit their intended trades.  Some websites offer an overview of the different trading platforms and are a great place to start. Keep in mind that many of the trading platforms are unregulated and so have a larger embedded risk.

Margin trading platforms are now available across a large number of Bitcoin brokers, including AvaTrade and Plus500 *(72% of retail CFD accounts lose money, Availability subject to regulation).

Shorting Bitcoin through Contract for Differences(CFD’s)

One of the key points to understand about shorting is that it isolates the change in the price. This is easy to understand on the “long” side – where the investor buys Bitcoin with the expectation that the price will increase but can be a bit confusing on the short sale. This isolation of the change in price is the key to understanding a Contract for Difference (CFD).

A CFD is a derivative. This is a frightening word for newcomers, but it simply means that the value of the instrument is determined by the value of something else. In this case, the value of the CFD is determined by the change in the price of Bitcoin. Investors buying a CFD do not actually own Bitcoin. They only own the change in the price of Bitcoin.

Just like the terms of shorting, the terms of a CFD vary by broker. Again, investors need to do some homework and find a broker that meets their needs. This includes the financial requirements for trading. Among these brokers, you can find Plus 500 *(72% of retail CFD accounts lose money), AvaTrade and FXTM. Investors who meet the definition of an accredited investor have access to investment products and strategies that are not available to the general public under US securities law.

Furthermore, there are various brokers that provide CFD’s which allow you to short other cryptocurrencies. See the list below:

Shorting Bitcoin via Futures Market (Cboe/CME)

One the easiest parts of a CFD to understand is that it measures the difference in the price of Bitcoin over a period of time. In this sense, a CFD “buys” the future price of Bitcoin. This can be done directly through the latest development in Bitcoin trading, futures contracts in Bitcoin.

Futures are easy to understand by beginning with their origins in the agricultural sector. A farmer who plants a corn crop cannot know what price it will bring when the crop is harvested. To eliminate this uncertainty he can buy a futures contract that will give him the right to sell his corn at a started price when it is harvested. The actual price at that time – the “spot” price – may be higher or lower, but his price is fixed by the futures contract.

Bitcoin futures contracts are available for as few as a single Bitcoin and have expiration dates ranging from one week to three months. One of the benefits of a future is that they can be traded before the contract expires. This means an investor can buy a futures contract and realize some of the value from that contract (presuming it has value) before the expiration date by selling the contract to another investor.


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Bitcoin Short – Pros and Cons

Shorting Bitcoin, or any financial asset for that matter, can get fairly complicated. However, the most important point to remember is that the most basic risk remains the same for the futures buyer as the straight short-seller. The potential loss has no cap, but the potential gain is limited to the current market price.

Investors use the strategies to short Bitcoin for a more important reason than just an expectation that the price will drop. Keep in mind that every strategy to short Bitcoin can be used to profit from a price increase. The most basic reason investors use margin, derivatives and futures is that these strategies employ leverage in one way or another.

These strategies allow the investor to own the change in price with a smaller investment than the current price of Bitcoin. In the case of a short, the price is the total transaction fees and interest. Leverage is a powerful financial tool used by every homeowner with a mortgage. Leverage multiplies the return on an investment that performs as expected, but also multiples the loss when it does not pan out.

Conclusion

Investors who have managed to grasp the relationship between blockchain and cryptocurrencies and then built on that to learn how to trade Bitcoin on exchanges have still only scratched the surface of how to profit from their knowledge. Understanding technical analysis –reading the patterns in the ups and downs of the market – is also only a step on the path to becoming a fully-equipped Bitcoin investor.

Gaining an understanding of how to profit from any movement in the price of Bitcoin could be the most important task the serious, savvy investor can undertake. Working through the math of how leverage increases Return on Investment (ROI) is part of understanding why margins, derivatives, and futures are so powerful. Working through the math of these instruments when they move in a bad direction is just as important to understanding the risk of leverage.

These building blocks are not always easy to acquire, but they are always worthwhile to have, even if the investor chooses not to use them. Understanding and tracking the futures market, for example, gives the investor insight into what other, perhaps more sophisticated investors, think will happen in the future.  That knowledge can be power.