The cryptocurrency market had been in the bear’s reign for long enough to make the market vermillion, however, the end of the week got great joy as the coins soared and rode a bullish high. Bitcoin [BTC], which had been falling for the longest time, also noted a significant growth.
At the time of press, the Bitcoin was valued at $3,647.67, with a market cap of $63.9 billion. The coin registered a 24-hour trade volume of $6.4 billion while registering a growth of 5.28% over the week. The coin has been falling by 0.48% over the past day and continued to fall by 0.19% over the past hour.
According to BTC’s one-hour chart, the coin reported a downtrend from $3,428.41 to $3,366.96, followed by an uptrend from $3,356.22 to $3,586.67. The coin drew resistance at $3,648.85 and a support at $3,585.60.
Bollinger Bands appear to be converging, decreasing market volatility. The moving average line is over the candles, indicating a bearish trend.
Awesome Oscillator also indicated a weakened bearish momentum.
Chaikin Money Flow, on the other hand, indicates a bullish market as the marker line is above the zero-mark.
According to the one-day chart of the coin, a downtrend is traced from $6,188 to $3,195.71, after which an uptrend was noted from $3,194.99 to $3,358.99. The coin marked an immediate resistance at $4,040.98 and another resistance at $4,075.33. The coin observed strong support at $3,358.99 and another resistance at $3,184.28.
Parabolic SAR points towards a bullish trend as the markers have aligned themselves under the candles.
MACD line is over the signal line, marking a bullish trend.
Relative Strength Index indicates that the buying and the selling pressures are evening each other out.
As per a majority of the indicators, Chaikin Money Flow, Parabolic SAR, and MACD, a bullish market is forecast. However, Bollinger Bands and Awesome Oscillator are predicting a bearish market taking over.
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Bitcoin [BTC] Halving: CoinMetrics pegs top-crypto to rise above $20,000 peak in late-2021
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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