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Bitcoin [BTC/USD] and XRP/USD Technical Analysis: XRP strides forward as BTC loses momentum after rally

Anirudh VK

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Bitcoin [BTC/USD] and XRP/USD Technical Analysis: XRP strides forward as BTC loses momentum after rally
Source: Unsplash

Bitcoin [BTC] saw the break of the $7,000 psychological resistance line recently amidst rising investor concern regarding the USD Tether currency. The coin has since been unable to convert the momentum into price movement concrete enough to move it beyond established levels.

XRP, however, has seen a continued growth since its pump in the market earlier this week, carrying forward slightly decaying momentum as investor sentiment wears out.

Bitcoin:

1 hour:

The $6,625 – $6,660 uptrend has presented itself since the beginning of the month, with the downtrends defined from price movement from $6,420 down to the $6,150 and $6,185 mark. The $6,190 – $ 6,440; line exists as a short uptrend for the price.

The Relative Vigor Index has seen a bearish crossover, with the MA line crossing below the signal.

The Parabolic SAR, however, is demonstrating a bullish signal, as the dots are present below the candlesticks.

The MACD is demonstrating an unclear signal.

1 day:

The long-term downtrend from May shows no signs of receding as the price is moving from the $9,800 mark down to $6,430. However, the $5,790 – $6,150 uptrend from June is contesting the power of the bear over the coin.

The RSI is demonstrating a balance of buying and selling pressure after the market recovered from an overbought zone.

The Moving Average is at $6,440, providing a support level for the price.
The KVO is recovering after a bullish crossover earlier in the week.

XRP:

1 hour:

The $0.374 – $0.399 – $0.46 uptrend is helping the price to continue finding upward momentum, with a downtrend from $0.586 – $0.465 contesting the movement.

The RSI is moving towards the overbought zone and might see a pullback into a selloff if the upwards momentum is not strong enough to carry the rally.

The Awesome Oscillator is moving downwards slowly, as seen by the transition from green bars to red bars.

1 day:

The RVGI is demonstrating a bullish crossover recently, with a healthy growth upwards.

The Parabolic SAR is bearish and is set to turn bullish judging from the position of the dots near the candlesticks.

A crucial resistance level is presented at $0.896, with the floor found at $0.264. A sharp support uptrend has described the price movement from $0.26 – $0.376, with a slight continuation to the $0.46 mark. A downtrend is being presented from $0.894 – $0.579.



Conclusion:

The continued momentum exhibited by XRP might the rally to solidify into a strengthened price movement. However, Bitcoin seems to be running out of steam, as most of the indicators are demonstrating a sell signal.





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

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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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