The cryptocurrency market’s rollercoaster movement has done nothing to alleviate the concerns raised by users and investors alike. Popular cryptocurrencies like Bitcoin [BTC], XRP and Ethereum [ETH] have all felt the brunt of the bear, with several updates and developments still not doing enough to pull it out of the bear pit.
The one hour chart shows a declining sideways movement which has not changed much over the course of the last 10 days. The recent downtrend brought the prices down from $3513.3 to $3462.1. The support has been holding at $3435.7 while the immediate resistance is at $3565.2.
The Relative Strength Index has just spiked up on the chart, indicating an increase in buying pressure over the selling pressure.
The Awesome Oscillator shows a gradual lull on the chart, a sign of the decreasing market momentum.
Bitcoin’s one-day graph shows a steep decline in its price as the bear lowered it to $3531 from $6463. The support has been holding at $3245.7.
The Chaikin Money Flow indicator is right at the zero line. This is an indication of the capital entering the market and the capital leaving the market to be almost similar.
The MACD indicator, on the other hand, displays the signal line and the MACD line to move as conjoined pairs. The sideways movement of both the lines comes right after a bearish crossover.
Bitcoin’s fluctuating movement does not seem likely to go anywhere as the above-mentioned indicators all point to non-sustainable bullish trends. As the tide slowly rises and falls investors are still rallying behind the coin for it to shoot up to its glory prices.
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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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