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Bitcoin Cash [BCH] Price Analysis: Bears return as market correction precipitates decline

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Bitcoin Cash [BCH] Price Analysis: Bears return as market correction initiates decline
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Bitcoin Cash [BCH] was pulled down by the bears following two successive cycles of bullish movement. Following the uptrends between 15 -18 March, the bears have returned to keep the sixth largest cryptocurrency company.

At press time, the coin had declined against the US dollar by 3.10 percent, and was trading at $156.12. The market cap of the coin stood at $2.79 billion, behind EOS by $580 million.

LBank took the top spot in terms of global BCH trading volume, accounting for 8.32 percent of the total volume via the trading pair BCH/BTC. Other exchanges with significant BCH trading volumes were ZBG, Huobi Global, and P2PB2B.

1-hour

The one-hour BCH chart showed two prominent uptrends, with the first pulling the price up from $132.26 to $156.58, and the next from $147.84 to $163.64. Between the two uptrends, the coin bowed to market correction forces, and fell from $155.58 to $148.25.

Bitcoin Cash found immediate support at $146.48, which the coin had shot up above. The immediate resistance level stood at $163.76.

The Bollinger Bands indicated reduced volatility as the coin’s price had stabilized, while the Moving Average line pointed to a bearish phase for the coin.

The Chaikin Money Flow tool showed a decrease in the money inflow into BCH tokens, as the CMF line had dipped below 0.

The Awesome Oscillator indicated a decrease in short-term momentum. Further, with the concluding bars turning red, bearish movement was in the offing.

1-day

The one-day chart showed two notable trends, the first from $128.03 to $152.76, and the second from $150.85 to $131.02.

Bitcoin Cash found immediate support at $118.42, with the price at press time soaring above the support level. The immediate resistance level was formed at $160.67.

The Parabolic SAR pointed to a bullish run for the coin, as the dotted markers were below the coin’s trend line.

The MACD also indicated a return of the bulls as the Signal line was below the MACD line.

The Relative Strength Index pointed to a significant increase in investor interest as the RSI had risen from 46 to 70.04, before dropping to 65.93.

Conclusion



The Bitcoin Cash market was buoyed by two successive uptrends, that saw the coin break multiple resistance levels, and register a price of over $160 for the first time in over two months. In the short term, the momentum was down, money flow was negative and the volatility was low.

The long-term indicators gave bullish projections for the coin. However, with market correction imminent, the Bitcoin Cash bears were anticipated to resurface and surge.





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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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