The bitcoin prices have been moving higher over the last 24 hours as the news that the Paypal co-founder Peter Thiel and his fund invested a lot of money in bitcoins has been doing the rounds and this has helped to boost the investor sentiment. We are not sure whether this single piece of news would be enough to turn the tide in the favor of the bulls and whether this news would be enough to convince the investors that all is well with the bitcoin market despite the regulatory crackdown in the industry over the last few weeks. We believe that it would take much more than that for the bitcoin bulls to begin feeling confident again and proof of that is the fact that the prices have dropped below the $15,000 region as of this writing and it appears as though the region around $15,000 would be crucial for the bulls to ensure that the prices continue to move higher.
Battle On in the $15,000 Region
The bitcoin market has been under pressure of late due to the introduction of the bitcoin future which has helped many traders and investors to begin shorting bitcoin. Also, we are seeing more and more regulators sit up and take notice of the bitcoin industry, more than any other industry and this has added the pressure on the speculators who had been one of the main reasons for the prices to continue to move higher despite various challenges that the bitcoin market has been facing over the last 6 months. This year should be an important one for the survival of this industry as a whole as it comes under increased scrutiny.
This has benefited altcoins like Ethereum which has broken through the $900 region over the last 24 hours. We had mentioned a few weeks back that we expect the ETH prices to break through the $1000 region during the first week of January and so far, it looks well on target. The fact that the mining of ETH is likely to go down in the near future is only going to cripple the supply and help to push the prices even higher.
Looking ahead to the rest of the day, expect a battle in the BTC market between the bulls and the bears for control, around the $15000 region over the next 24 hours. The ETH prices are likely to continue moving higher and it should only be a matter of time before the $1000 region in challenged.