What to expect from Bitcoin and Ripple and how to make money on their movements
In recent months, Bitcoin (EXANTE: Bitcoin) has been steadily falling leading to a progressive decrease in the number proponents of long positions. Here the best recommendation is to follow the trend using occasional kickbacks for more profitable sales. At least by sticking to this strategy since the beginning of the year it would be possible to increase the deposit by several times.
There is an opinion that sellers’ long-term objective is the break-even level of Bitcoin mining. This level is different in different countries: however, considering the increased computational complexity, the average value is in the range of $3,000−4,000 per unit. Taking into account that today BTC/USD pair is quoted at $6,774, the profit potential is quite big. It should be mentioned that each wave of discounts is accompanied by concurrent negative news which enhances downward tendency.
Just last Monday, Bitcoin price fell by 7% from $7,060 to $6,590. This happened after Bloomberg warned investors against investing in funds specializing in cryptocurrency speculations. According to agency data, reduction of market capitalization in 2018 has caused hedge funds to suffer a 23% loss. As a result, at least nine funds have closed since the beginning of the year. It looks like this is just the beginning, and natural crypto selection will continue.
According to an AMarkets analysts, an opportunity to open short positions will arise in the market again after a short recovery, and it shouldn’t be missed. The next bearish rally may already start after support breakout at $6,500. It is recommended to sell Bitcoin exactly at this level.
Another noteworthy asset is Ripple (XRP/USD). Currently quotes are within a narrow range of $0,45−0,5 which can be indicative of accumulation of aggregate position on the side of crypto investors. The longer Ripple remains within this range, the more chances there are to see rapid dynamics capable of changing the trend.
Today, sellers dominate the market, and it may look like long positions in Ripple are not the best investment solution. However, this is not true.
Unlike many other large cryptocurrencies, Ripple has lately suffered even bigger losses. XRP/USD rate for just Q1 fell from $2,5 to $0,5 as a result of a legal action started between once reliable partners Ripple Labs and R3. The conflict arose because of an option contract to buy 5 billion Ripple tokens at $ 0.0085 per unit which was annulled by Ripple Labs because R3 hadn’t fulfilled its obligations with regard to brand building.
The final decision about who is right or wrong will be made by New York Court possibly by the end of the month. If the decision is in favor of Ripple Labs (chances are very high), rate increase will be ensured.
Additional interest in Ripple is also stirred up by Apple’s (NASDAQ: AAPL) plans to incorporate technology into Apple Pay. This news has possibly had no direct effect on XRP rate yet but each new proof of the company continuing to actively develop its technology by signing new contracts cannot in the long run fail to be reflected on the price of its products. We recommend waiting till correction of XRP/USD till $0,45 and then opening long positions with immediate objective at $1.
If you want to earn by selling cryptocurrencies, you will need broker’s services. For example, you can turn to a regulated AMarkets broker who ensures trader account protection for up to $20,000 as well as has lately undergone an audit of large consulting company Ernst & Young to confirm company’s financial soundness.
Currently, 15 cryptocurrencies with the largest capitalization including Bitcoin, Ethereum (ETH/USD), Litecoin (LTC/USD), Ripple and Monero (XMR/USD) are available for trading via AMarkets.
By Taya Aryanova