Just a few short years ago, buying up cryptocurrency was all the rage and created substantial wealth for investors who bought these virtual coins anytime before the beginning of 2017. Some of the most popular cryptocurrencies, like Litecoin, Bitcoin, Ethereum, Stellar, and Ripple, generated astonishing returns for anyone who bought, mined, or otherwise acquired these digital currencies soon after they came into existence. We are talking about gains of between 4,000% and 17,000,000% — potentially life-changing wealth. You might have noticed, Bitcoin and other cryptocurrencies after staying in the post-hype stage from late 2017 until late 2018 started seeing some recovery as I’ll discuss later in this article. The Crypto sector is no longer a viable get-rich-quick scheme, and experts caution against it if you’re seeking short-term gains. After researching this sector, I have learned that the cryptocurrency sector is basically being treated as the safe-heaven investment option because there has been a great interest in gold-backed crypto.
Cryptocurrencies like Bitcoin have established themselves as an emerging new asset class, distinct from bonds, equities, and fiat currencies. This recognition took considerable time, but today investors, large and small, are keen on adding more cryptocurrencies to their portfolios. Hackernoon
How Cryptocurrency Stocks will Perform in 2020?
In order to have an idea of the future price targets for the cryptocurrency stocks, we first need to see how the crypto coins will perform. The weekly charts in the following sections were captured around February 12, 2020, but still, show the long-term picture.
Bitcoin, when it was first introduced to the market people thought that it is going to be used in everyday transactions like US dollars or other currencies. Since its launch, Bitcoin has gained 9,000000% from $1 to $9000.
People don’t see bitcoins as a mode of transaction these days, but rather as a safe haven investment like gold. Millennials consider bitcoin as digital gold as the baby boomers think about physical gold. Other than that, countries like China are creating their own cryptocurrencies and also there has been a great interest in gold-backed crypto.
Where the price of bitcoin is headed in the future? Is there any chance it will go back to $1 or will trade above its all-time high of $20000?
“Bitcoin is the new gold, it captures 10% of the market cap of gold which is around eight to nine trillion” Antoni Trenchev, Co-founder of Nexos. Trenchev added that the Bitcoin price would reach the $50,000 level if the crypto asset is able to take hold of 10% of the current gold market. The Nexo co-founder claimed that, eventually, people will only be able to afford to buy satoshis rather than whole Bitcoins for their portfolios.
Technically for bitcoin, the 200-day MA at $3,000s was the bounce point from early 2019 as shown in the chart below, then the $4,500s resistance level in 2017 was broken. After reaching a high of $13000s in mid-2019 bitcoin again bounced from its 50-day moving average making a higher low in the $6000s range.
Bitcoin has already gained more than 200% since early 2019 and is more likely to test 2019 highs than testing the support at $9900s and then 50-day moving average at $8200s.
Ethereum is the second-largest cryptocurrency and, for many in the crypto community, the second major bet after Bitcoin. After the price rise that took place on February 5, when ETH crossed the $200 threshold, Vitalik Buterin’s coin hit $229 on February 9. After that, ETH dropped a bit and is now trading in the $220 area. Some crypto traders believe that, in the short term, Ethereum is likely to resume its upward movement.
‘ETH is likely to continue towards 0.0257 Sats’
Crypto analyst Michael van de Poppe is one of those who have been closely watching the ETH charts. He suggests that, provided ETH remains above the $212 level (0.0217 Satoshis), the second biggest coin may start surging towards $251 (0.0257 Satoshis).
Ethereum may start moving towards $553
Crypto trader and analyst ‘CryptoWolf’ has posted a chart, commenting that, should ETH close above the neckline resistance it previously overcame, the price is likely to skyrocket. On the chart, the $553 level is marked (0.05660 Satoshis) as the destination.
Similar to Bitcoin, Litecoin is a digital currency that facilitates global transactions online. Litecoin allows users to send money digitally through the use of blockchain technology, without the need for intermediaries. It can also be used to pay for certain things such as travel and property. Litecoin is one of the most popular digital assets as it offers cheaper transactions than Bitcoin, making it useful for everyday purposes. Litecoin reached its all-time high of $401.76 and then lost almost all of its value in late 2018 reaching $22.36. From there, it reached a high of $140s in mid-2019. Litecoin’s price crashed back to the $30s range by late 2019 and then later has bounced from its 200-day and 50-day moving averages. It is currently trading in the $90s range and has already gained more than 300% since early 2019 and is more likely to test 2019 highs than testing the support at $90s and then 50-day moving average at $80s.
When I first started looking at bitcoins in mid-2016, it was trading in the $400 range and I was like, “maybe I should buy some bitcoins,” but didn’t find a suitable and reliable way to invest in bitcoins as there were not many companies involved in the cryptocurrency sector.