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Bitcoin Cash [BCH] Price Analysis: Bears hold dominion over coin as price remains stable

Biraajmaan Tamuly

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Bitcoin Cash [BCH] Price Analysis: Bears keep stronghold over coin as price remains stable
Source: Pixabay

Bitcoin Cash [BCH] failed to capitalize on the market’s recent price surges. The token’s market capitalization was recorded at $2.3 billion, while the token was valued at $131.24, at press time. The coin also fell by 1.70% against the US Dollar, and managed a trading volume of $301 million over the past 24 hours.

1-hour

Source: TradingView

The short-term chart indicated a stable trend for BCH, apart from the massive devaluation which occurred on March 4. The coin has since managed to regain bullish momentum to trade sideways within the resistance zone of $132.60 and $128.80. The short uptrend extended from $122.60 to $130.20 and the support line remained constant at $121.90.

The dotted markers of the Parabolic SAR hovered over the candlesticks, indicating a bearish trend for the coin.

The Fisher Transform indicator pointed towards a bullish trend as the red and blue line underwent a crossover and the blue line placed itself above the signal line.

The Aroon Indicator showed that bulls had the upper hand in the market.

1-day

Source: TradingView

The long-term chart was majorly bearish, as the token suffered a brutal fall in price in November 2018. The downtrend extended from a high of $624.80 to $158.10. The support level for the coin was found at $75.60.

The Bollinger Bands held firm, with the bands not converging or diverging away from each other. This suggested low volatility.

The MACD line signaled a bearish trend as the red line hovered over the blue line.

The Relative Strength Index or RSI indicated an even buying and selling pressure for the coin.



 Conclusion

The short-term indicators did not give a clear projection for the coin. However, the long-term indicators were certain in suggesting a bearish trend for the coin.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

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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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