Bitcoin started 2017 under $1000. Ethereum was under $10, and Litecoin was under $5. Bitcoin is now in 14000s, Ethereum is at around 700, and Litecoin is in the 250s. These coins have yielded once in a lifetime kind of returns. So will they yield 1000% returns again in 2018?
Huge Move Has Been Made
The honest answer to the last question is almost definitely not. Any asset class that makes this kind of move will rarely replicate their returns in back to back years. However, this doesn’t mean that they won’t be good investments for 2018. Despite the recent crash, all three quickly rebounded. That rebound demonstrated that there was still a decent amount of strength in these names. The uptrend in these names appears to be intact. Right now all of these cryptocurrencies are trading in a range and no clear trend has developed. It would be best to let them form a trend before starting a new position or adding to an existing one.
Everyone Cannot Win On An Investment Forever
Nothing can go up forever. Eventually people who have invested in these cryptocurrencies will want to take their profits. Eventually buyers will run out, especially after it went parabolic recently. It would be very unrealistic to expect Bitcoin to go to $300,000 next year. Ever since Bitcoin futures have began trading, it has brought bigger players into the cryptocurrency space. This is something to keep in mind when you’re trading these in the upcoming year. As a result, these cryptocurrencies will likely be more choppy next year, in contrast to the pretty much straight up like movement we have seen this year.
Pullback Would Not Be A Surprise
Given how much these have gone up the past year, it would not be a surprise to anyone if we got a decent retracement. Just like a sprinter, cryptocurrencies need to rest after making a big move. It would be healthy to see a bit of a retracement after these cryptocurrencies went up 100’s of percent this year. This does not mean that the uptrend is broken, unless we see a huge retracement where these cryptos give back 50% or more of their gains this year.
We go into greater depth about the future of Bitcoin, Ethereum, and Litecoin in our latest Cryptos with Kunal YouTube Live event:
Kunal Desai is an American day trader (stocks and cryptos) and founder of Bulls on Wall Street and Bulls on Crypto Street, two online trading academies and informational publications. He has been featured in many high profile publications like Inc, Forbes, Buzzfeed, and Fortune. He has spoke at trading and business events all across the World.