Crypto Market Update
Happy New Year, Everyone
My plan is too slowly accumulate Bitcoin with weighted percentages at certain price points. I’m implementing this strategy because my belief is that the prices I will be able to purchase $BTC at during 2019 will be highly enviable entries in the coming years. Although I’m skeptical of new all time highs being achieved in 2019, I do think the market, as a whole, should return nicely over the course of this year as momentum is achieved before the next bull run ensues.
The current price of Bitcoin is $3817, with 24 hour volume leveling at 4.7 billion USD. Bitcoin has consolidated in a tight $400 price range between $3500-$3900 for about a week.
At this point in time, price action seems to be pointing in favor of the bulls. I mentioned the 3500’s in our prior update as a significant area of support, and it provided buyers with a motivated entry. In our opinion, Bitcoin looks prepped to break out above the 7-day high of $3960.
I’m adding to my current exposure to crypto with about 50% fiat / 50% crypto weighted percentages. I will look to add more on a break out and close above $3960 on a 4hr time frame or higher. A break below $3500 would signal renewed bearish pressure and I would return to net short positions at that time.
Ethereum has stolen the show as of late by posting yet another green day, up over 11% over the course of the past 24 hours. This has been a continuation of a nearly 80% rally from 2018 lows for Ether as it has retaken the #2 spot for total market cap of cryptos. I believe some of this rally may be spurred on by the upcoming Constantinople fork in the Ethereum protocol, which will be occurring on the 16th of January. This will be an upgrade to the Ethereum blockchain as it will decrease the block time, making the network faster.
I will be looking for further consolidation on Ether to accumulate a larger position. The upcoming Constantinople fork has been a long awaited protocol update that will be very promising for the long-term success of the Ethereum blockchain.