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Bitcoin [BTC/USD] Technical Analysis: Short-term recovery threatens bear’s position

Anirudh VK

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Bitcoin [BTC/USD] Technical Analysis: Short-term recovery threatens bear's position
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Bitcoin [BTC] has recently bounced back, tracing a recovery from the bearish zone and providing a positive sentiment to the investors. However, even as the coin has orchestrated its temporary escape from the clutches of the bear, the price still has a long way to go before it reaches further bullish momentum.

1-hour:

An uptrend is visible from the $6,220 – $6,325 range, with an accompanying uptrend from $6,380 – $6,530. This is counteracted by the downtrend from $6,530 – $6,355, which is testing supports at $6,320 and $6,220. Resistance levels are set $6,390 and $6,530.

The Awesome Oscillator is bullish and moving upwards as seen by the green bars on the indicator.

The Klinger Volume Oscillator is also demonstrating a bullish crossover after the bearish move, suggesting a possible recovery.

The RSI recently recovered from the oversold zone, demonstrating that the coin has regained its buyers.

1-day:

The uptrend is providing a support from $6,185 – $6,270 – $6,335, with a downtrend from $9,800 – $8,390 – $6,500. The $5,850-mark is set as the last support, with a primary support line at $6,145. Resistances are set at $6,525, $6,750, $7,335 and $8,385.

The Parabolic SAR is bearish, as evidenced by the presence of the dots above the candlesticks.

The MACD is moving closer to the signal line and might indicate a possible bearish crossover in the near future.

The Stochastic RSI is demonstrating a possible entry point, which might indicate a bounce upwards.



Conclusion

Bitcoin might see a short recovery to the upwards direction, and continue to test its short-term resistance. However, if the bear continues to exert its power on top of reducing investor sentiments. Resistance levels are set at $6,390 and $6,530.





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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
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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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