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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC sends mixed signals while LTC sides with the bear

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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: BTC sends mixed signals while LTC sides with the bear
Source: Pixabay

Litecoin [LTC] was overtaken by Bitcoin Cash [BCH] on CoinMarketCap after market correction forces followed a week of price surges and coin market consolidation.

At press time, Bitcoin [BTC] held a market cap of $90.29 billion and was priced at $5,117. The crypto registered a 24-hour trading volume of $12.64 billion and rose by 1.64% over the past 24 hours.

Litecoin [LTC], the fifth largest cryptocurrency, held a market cap of $4.89 billion and a 24-hour trading volume of $2.67 billion. The crypto-asset was valued at $79.85 and gained by 2.23% over the past 24 hours.

1-day BTC chart

Source: TradingView

BTC’s one-day chart exhibited a downtrend from $6,451 to $5,309, along with a small uptrend from $4,194 to $5,109. The supports for the crypto-asset were found at $4,036, $3,789 and $3,469, while the immediate resistances stood at $5,654 and $6,467.

Bollinger Bands: The mouth of the bands was open and predicted increasing volatility for BTC’s price.

Awesome Oscillator: The closing bars of the indicator were red, projecting bearish activity for the coin.

Chaikin Money Flow: The CMF was above the zero-line, indicating that money was flowing into the coin market. Hence, a bullish price pattern for BTC was forecast.

1-day LTC chart

Source: TradingView

The one-day LTC chart exhibited two uptrends from $32.90 to $45.68 and $45.68 to $60.31, followed by a minor correction. Another uptrend from $61.17 to $79.10 was registered. A minor downtrend from $56.52 to $34.60 was also noted.

The coin continued to fall back below the $80 mark. However, another potential price break was anticipated, one that may push the coin over the recently surpassed $90. The support points for LTC stood firm at $56.70 and $41.93.

Parabolic SAR: The dotted markers were below the candlesticks, suggesting a bullish phase for the silver crypto.

Klinger Oscillator: The reading line was below the signal line and projected a bearish course for LTC’s price.

MACD: The MACD line was also below the signal line after a bearish crossover.



Conclusion

Bitcoin’s valuation continued to project high volatility and oscillated between bullish and bearish patterns, unlike Litecoin, which sided with the bear.





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Chayanika holds a Journalism degree and is currently working with AMBCrypto. She is inquisitive about everything that the Blockchain Technology has to offer.

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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021

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Bitcoin Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
Source: Pixabay

With a year left for the highly anticipated Bitcoin [BTC] halving, many expect the price of the top-cryptocurrency to surge prior to May 2020. Analysts have previously opined that three months to one year before the halving does the price of the cryptocurrency move up.

A new piece of research from the cryptocurrency analytics firm, CoinMetrics, suggested that in addition to the precursor pump, Bitcoin [BTC] will reach its “local peak” 18 months after the halving.

 

CoinMetrics charts the price of the top coin, divided based on the 2012 and 2016 halving, showing a noticeable trend. A little more than a year after the first halving when the 210,001 block was mined, the price of Bitcoin surged above $1,000 for the first time, in December 2013 to be precise.

Next, During the July 2016 halving, the coin was trading at just above $600 and within the suggested period of 18 months, the top virtual currency saw its second peak. On 17 December, the coin reached a never-before-seen high of over $19,700 as the Chicago Futures exchanges embraced the digital assets market.

With the price of Bitcoin over $5,000 for the first time in over four months, and the precursor halving bulls on the horizon, the price could surge. Furthermore, based on CoinMetrics’ inference, Bitcoin will see its third peak, higher than $20,000, by the close of 2021, eighteen months after the May 2020 halving.

The halving protocol was placed in the original whitepaper to thwart inflationary pressure that would arise with more blocks mined and more Bitcoins supplied. Historical charts prove that this objective has been adhered to, with a constant drop in the inflation rate with the two previous halvings.

In 2012, the inflation was over 25 percent and immediately after the miner reward reduction to 25 BTC per block, it dropped to under 15 percent. A bracket between 7 percent and just under 20 percent sustained until the second halving in July 2016.

The second halving saw a decline in inflation rate to under 5 percent for the first time in the coin’s history, which has been maintained till today. CoinMetrics pegs the inflation, at press time, to be 3.8 percent. Furthermore, if the historic trend continues, the inflation rate would drop by more than 50 percent to 1.8 percent in May 2020.



Based on the current market and using a historical outlook, analysts suggested that 2019 will be the year of building the industry while the price effect will manifest next year, with the halving being at the very core. Many believe that institutional interest on the rise and the growing crypto-adoption surge could result in a bullish 2020.

Charlie Lee, BTCC’s co-founder suggested in December 2018 that Bitcoin’s next rally will begin in “late 2020”, months after the halving and would peak in December 2021 at 333,000. However, the precursor to this rise would be a January 2019 bottom of $2,500 which did not materialize.





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