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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Prices stagnate as bull run falls short of momentum

Akash Anand

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Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Prices hold steady valuations as market moves towards a neutral trend
Source: Pixabay

Bitcoin [BTC]’s hold above the $5,000-mark has been a celebrated affair with several proponents of the cryptocurrency and the crypto-verse taking it as a sign signifying the end of the bear market. Litecoin [LTC] had a recent run on the charts too when the coin became one of the best performers in the recent bull run. However, the coin’s price has since fallen considerably.

BTC 1-day:

Source: TradingView

Source: TradingView

Bitcoin’s one-day chart showed a downtrend that lowered the price from $6,540.82 to $5,266.87. The long-term support was at $3,143.64.

The Bollinger Bands had converged which meant that Bitcoin was in a bearish environment. The convergence comes after the bands formed the largest Bollinger cloud in three months.

The Chaikin Money Flow indicator was above the zero-line, a sign of the capital coming into the market being more than the capital leaving the market.

The Awesome Oscillator had spiked in amplitude as Bitcoin’s market momentum increased by a significant amount for the first time in 2019.

LTC 1-day:

Source: TradingView

Source: TradingView

The one-day chart for Litecoin painted a picture opposite to that of Bitcoin as an uptrend lifted the price from $26.36 to $92.47. Litecoin’s long-term support was at $22.54.

The Parabolic SAR was below the price candles, which showed that LTC was going through a bullish atmosphere.

The Relative Strength Index was close to the overbought zone as the buying pressure was significantly more than the selling pressure.

The MACD indicator had risen drastically as the signal line and the MACD line went through a bullish crossover. The MACD histogram was a mix of bearish and bullish signals.



Conclusion:

The indicators stated that Bitcoin’s bullish surge was over as Litecoin fell into a sideways movement. The analysis also showed a lack of any major price outbreak in the near future.





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Engineering graduate,crypto head and Arsenal fan. Is fascinated by technology and all its marvels. Strictly against pineapple on pizza.

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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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