Cryptocurrencies: Is it profit booking or bubble burst?

It’s a fifth consecutive day of disappointment for the modish investors of the Bitcoin, the world’s most trending cryptocurrency. The currency which is now talked about by any investor, be it a novice or a pro, has corrected nearly 34.6 per cent, though after a sharp rally of 268 per cent, since November 12, 2017. After hitting its all-time high of US$19,891, Bitcoin formed a strong Doji pattern on the daily charts, which was confirmed by a fall on December 18.

The leading cryptocurrency had attempted a bounce but failed to breach the upside. So far, the downside has been supported by rising volumes and oscillators’ negative crossover. The level of 13000-12730 would act as immediate support, followed by 12645 and 10935. However, Bitcoin is now trailing near its support level and hence, in case of any bounce back, we hold 15635-16450 as immediate supports, followed by 17260 in near term.

The silver to Bitcoin's gold, Litecoin, follows Bitcoin closely. Litecoin posted its fourth consecutive downbeat approaching its major support at 252-245 levels. The third widely talked about currency, Ethereum, which is also expected to replace Bitcoin in investors’ wallets witnessed its first big fall after a consolidation of three days at all-time high levels. This currency had given a rounding bottom breakout at 24 on November 27 and thereby has achieved its target of 40 in the last couple of days. Even Zcash posted a sharp fall in Friday’s session, after tremendous volatility witnessed in the prior session.