BTC/USD Price Forecast December 21, 2017, Technical Analysis

Bitcoin continues to be very volatile, and with the 20 SMA on the hourly chart rolling negative, it looks as if we’re going to test the $16,000 level and how resilient it is as support. A breakdown below there sends this market to the $15,000 level, an area that I think is important. A lot of the negativity would be due to Youbit, a South Korean exchange that has been hacked yet again, losing roughly 20% of its client’s coins. In fact, the loss was strong enough to force the exchange to go into bankruptcy overnight. Investigators are still trying to figure out who hacked the exchange, which is becoming a much more dangerous scenario, as the value of Bitcoin has made hacking much more profitable than it once was.

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Beyond that, Bitcoin Cash is being investigated for insider trading. Because of this, the cryptocurrency markets, in general, are struggling a bit, and I think that the likelihood of liquidity being an issue over the next couple of days will probably dampen some of the enthusiasm. This is not the first time in exchange has been crushed through theft, and it highlights a lot of the issues with cryptocurrencies. One of the biggest advantages that proponents preach is safety, but clearly, anything can be hacked, as we are learning.

In general, the uptrend continues, but every time something like this happens one would have to be a bit concerned. If we do rally from here, I think somewhere around $18,000 we will see sellers step back into the market. If we break down below the $15,000 level, I think $13,000 would be targeted next. Expect volatility, the volume is going to be lower than usual, and of course, fear jumping into the market doesn’t help the situation either.