The Month in Review: Analyzing the Cryptocurrency Markets in December


Looking at the cryptocurrency markets in December, it turned out to be another “red month.” All of the major cryptocurrencies will finish in negative territory. In terms of 2019, Bitcoin was one of the few bright spots managing to produce an impressive gain of 94.8%. Despite their ups and downs, other notable winners included Litecoin, Bitcoin Cash, and NEO.

Most crypto analysts agree that cryptocurrencies need some type of catalyst to initiate a new bull market. The majority of cryptocurrencies have been drifting lower for the past two years. Therefore, it’s very important to reverse the trend in 2020.

Cryptocurrency Markets in December

Cryptocurrency Markets in 2019

2020 Is a Critical Year for the Crypto Universe

Since its inception in 2009, BTC has experienced five major declines of greater than 50%. Each price decline was eventually followed by a new all-time historic high. Therefore, based on this information, we can expect Bitcoin to ultimately exceed its high from Dec 18, 2017.

Historical Price Declines

As you can see from the table, the average price decline is 76.7%. Another important piece of information is the number of days it takes for Bitcoin to recover from a bear market decline. In other words, how many days does it take for Bitcoin to record a new all-time high (after falling by more than 50%)? Please review the following table.

The historical data concludes that it takes Bitcoin 655 days to generate a new all-time high (after falling by at least 50%). Therefore, Bitcoin should form a new all-time high above 19,862 in February 2020. However, it seems highly unlikely that Bitcoin will penetrate 19,862 within the next two months.

In November 2013, BTC reached a bull market top @ 1,135. Following the peak in November 2013, Bitcoin entered a nasty bear market. As you can see from the chart, it took Bitcoin 1,133 days to finally generate a new all-time high. Based on this information, it’s quite possible that BTC will not exceed 19,862 until February 2021.

Without question, 2020 is shaping up to be a critical year for Bitcoin as well as the entire crypto universe. The price of BTC has been drifting lower for the past two years. In fact, Bitcoin has lost 63.9% of its value since December 2017. Therefore, it’s very important for BTC to generate positive momentum in 2020.

If Bitcoin is unable to produce a bullish breakout, all cryptocurrencies will probably struggle in 2020. Please review the chart below.


The Digitex Trading Platform Receives Positive Reviews

The Digitex beta public launch occurred on Nov 30, right on schedule. Over the course of the past 30 days, the trading community’s response to the testnet launch has been remarkably positive. Specifically, many traders have commented on the functionality of the platform.

They are quite pleased with the overall design of the interface. Additionally, the trading community has made several positive remarks concerning the Digitex technical support team. Traders have been impressed with the level of service provided by technical support in terms of helping new users understand the trading platform.

Of course, the crypto trading community will be especially excited when Digitex announces the mainnet launch in 2020. When the mainnet launch officially kicks off, Digitex will become the first exchange to offer commission-free trading of Bitcoin futures. This will be a huge milestone in the 171-year history of futures trading.

Personal Comments

I’ve been trading commodity futures products since 1989. I must admit, the Digitex mainnet launch in 2020 will be the most historic event of my 30-year trading career. Digitex has an opportunity to completely revolutionize the futures industry by offering zero-fee trading. A successful mainnet launch will allow Digitex to capture an enormous amount of crypto futures market share.

Bitcoin is just the beginning. The Digitex platform could easily offer other products in addition to BTC. This would include additional cryptocurrencies and even traditional futures products. Of course, all of these products will be traded using the DGTX native currency. This explains why DGTX has huge upside potential over the course of the next several years.

Digitex Futures writers and/or guest authors may or may not have a vested interest in the Digitex Futures project and/or other businesses mentioned throughout the site. None of the content on Digitex Futures is investment advice nor is it a replacement for advice from a certified financial planner.