Perhaps it’s an early Christmas gift but Bitcoin has rallied somewhat in the last 24 hours as we head into Christmas Eve and the final push till the end of the year, pushing past US$7,500 and holding above that level for the first time in almost two weeks.
Moving forward in the week ahead, we can expect Bitcoin to continue to trade tightly rangebound between US$7,300 to US$7,700 and it is unlikely that any moves can be expected above the US$8,000 level of resistance.
Ethereum also clawed back some ground but still remains firmly stuck between US$130 and US$140 until more positive technical news emanates from its developers. And unlike Bitcoin, which is deflationary, there is no cap to the amount of Ethereum that can ever exist, the pressure on prices to stay low remains strong.
For one thing, as traders get well into the swing of the holidays, major moves are unlikely, but a push to end the year on a Bitcoin high is certainly present, as Bitcoin looks to end the year more than double what it began the year at. To be sure, cryptocurrency markets never sleep and while those who celebrate Christmas will be stuffing stockings with presents and gathering by the fireplace, countless bots and traders from other parts of the world who do not celebrate Christmas will be continuing with the work of trading cryptocurrencies.
In the past week alone, 8 out of the top 10 cryptocurrencies by market cap regained most of the ground they lost during the week, more or less ending up where they started the past week at, suggesting that human or bot, the jury is still out on where cryptocurrencies will end the year at.
And against that backdrop, perhaps now is as good a time as any to take off the trading hat, put on the Santa hat and dive into the holidays, because 2020 will provide plenty of opportunities for cryptocurrencies.
Happy holidays.
