VTC Prediction 2018: Forecasting an $8,000 Price Tag on Vertcoin

bitcoin pricesVertcoin Forecast: A Powerful Move Towards Higher Prices Is Brewing

The enthusiasm and interest in cryptocurrencies continues to grow, and it is reaching levels that are quite astonishing. For instance, there are currently over 1,000 currencies in circulation, and this number continues to grow exponentially. Finding a compelling cryptocurrency in this space can be quite a daunting task, but I think I may have stumbled upon an opportunity in the making with Vertcoin (VTC).

The reason why this cryptocurrency is compelling is that I find the VTC price chart intriguing. For someone like myself, who uses technical analysis to base his opinions on an investment, this is probably the only way to determine whether any of these cryptocurrencies are worth delving into. There are no fundamentals to base valuations on and all that is left is the price action.

Technical analysis is a method of analysis that is predicated on the notion that price moves in a trend, and therefore, historical price and volume data can be used to forecast what the future may bring. I have devoted nearly two decades to this method of analysis, and the reason for this journey is quite simple; when it is applied in an appropriate manner, the results are simply astonishing.

Vertcoin Price Chart

The following VTC price chart using a Vertcoin/Dollar exchange rate illustrates the price action since inception.

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Vertcoin Price Chart

Chart courtesy of TradingView.com

This VTC price chart illustrates a significant level of price resistance that currently sits at $7.25, which was established shortly after Vercoin’s initial coin offering (ICO).

Breaking above a level of resistance that was set shortly after an instrument began trading publicly is a characteristic shared among some of the best-performing investments. Bitcoin, Ethereum, Facebook Inc (NASDAQ: FB) stock, and Shopify Inc (NYSE: SHOP) stock are just a few stocks that share this similar trait. Once this significant level of resistance was finally broken, these instruments set on an epic journey towards much higher prices.

This level of resistance is the reason why I am currently intrigued by this cryptocurrency because when, and if, VTC gathers up enough strength to break above this level of price resistance, it will open the door to much higher prices.

Vertcoin Forecast

Before I move forward with a forecast for VTC, I need to point out that this VTC price forecast is predicated on the notion that Vertcoin has successfully broken through resistance, which currently sits at the U.S. exchange rate of $7.25.

There are two ways I can use the break above resistance to create a price objective.

The first way involves using the linear distance between the level of resistance and the low, and projecting that value on top of the resistance level. This method provides a Vertcoin price forecast of $14.40.

The second involves using a method known as parabolic extension. This method uses the log-based distance between the high and low, and this metric is then projected on top of the level of resistance that sits at $7.25. This method produces a price objective in the range of $8,000.

There is quite a discrepancy between these two Vertcoin price forecasts. I am leaning towards the second method because even though the price objective of $8,000 sounds like a bit much, it is within the context of some of the moves experienced by other cryptocurrencies. Given that this characteristic is based on the other constituents in this sector, I do not believe that VTC’s move will be any different when it breaks above resistance.

Supporting Indications

I have clearly stated that both price objectives are contingent on a break above resistance, and I have reason to believe that at least a test of this level is in the cards, because the price action on the VTC price chart continues to support this notion.

The following Vertcoin price chart has been annotated in order to illustrate the constructive price action that has supported the advance off the lows.

Vertcoin price chart

Chart courtesy of TradingView.com

Constructive price action consists of an alternating wave structure containing impulse waves and consolidation waves. The impulse waves are highlighted in green and consolidation waves are highlighted in purple.

The impulse waves define the stage in a bullish trend where the price moves in an uninterrupted relentless move towards higher prices. This wave concludes when metrics have reached an extreme, implying an overbought condition.

The consolidation waves define the stage in a bullish trend where the price stages a correction in order to unwind the overbought condition that was created during the impulse wave that preceded it. Unwinding an overbought condition creates the necessary environment so a new advancing impulse wave can develop.

These waves are dependent on one another, and in an alternating wave structure, they create the foundation for a sustainable move towards higher prices.

VTC has recently completed a consolidation wave, which suggests that an impulse wave is now in development. This impulse wave has the potential to test the price point at $7.25, which currently marks the previous all-time high.

Anticipating the Breakout

Aside from Bitcoin, the other large-cap cryptocurrencies, such as Ethereum, Litecoin, Ripple, and Monero, are all consolidating their gains that were made earlier this year. I am watching these cryptocurrencies to break out of their consolidation waves and forge new highs just like Bitcoin did. This will act as an indication suggesting that a rising tide is lifting all boats and another run in this lucrative new market is going to take hold.

Once this event occurs, I believe it will seal the deal for VTC price prediction, and new all-time highs will be in order.

Reasons to Be Cautious

There is quite a lot of enthusiasm towards cryptocurrencies and the proliferation of them is actually a cause for concern. The price action that is suggesting astronomical price objectives is all based on price bubbles. If you have not experienced a bubble, let me explain what transpires.

The stock sets on an epic journey towards higher prices that goes beyond any rational expectations. This epic journey reaches an apex, with a tremendous amount of volatility fueled by public participation. The price then proceeds to deflate in dramatic fashion, erasing all the gains that were created, in a fraction of the time it took to create them.

The price action in cryptocurrencies has an uncanny resemblance of bubbles of the past, and as a result, I believe that this bubble will end in tears, just the like the ones that preceded it. Caution is warranted, risk must be managed, and it pays to be nimble.

Analyst Take: 

Cryptocurrencies continue to generate interest and it is fueling the current advance. I have the inclination to believe that when Vertcoin forges a new all-time high by breaking above $7.25, it will set the wheels in motion where higher prices will follow. I would not be the least surprised if VTC hits a high of $8,000 before everything is said and done in this euphoric paradigm of a bubble/bull market.