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Bitcoin Cash [BCH] Price Analysis: Bulls look to lose out against bears as market turns

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Bitcoin Cash [BCH] Price Analysis: Bulls look to lose out against bears as market turns
Source: Unsplash

The collective cryptocurrency market has managed to sustain its bullish wave of the previous week. Bitcoin Cash [BCH] retained its sixth position on the global coin ladder after being pushed down by Litecoin [LTC] and EOS [EOS], despite being the most under-performing coin in the top-10.

Bitcoin Cash has dropped by 2.51 percent against the US dollar in the past 24-hours with the current market cap of the coin standing at $2.2 billion.

In terms of exchange dominance, BW takes the top spot, accounting for $36.16 million or 11.67 percent on the BCHABC/USDT trading pair. Second on the list is LBank with 5.77 percent or $17.88 million on the BCH/BTC trading pair.

1-hour

Source: TradingView

The one-hour Bitcoin Cash trend line shows a massive spike on 8 February, with the price rising to $127.29 from $120.13, within a day. Bitcoin Cash saw a massive uptrend during the same, extending from $115.09 to $128.92, following the mid-week uptrend from $111.53 to $117.29.

Bitcoin Cash’s immediate support level prior to the recent rise stood at $110.4, which now stands at $120.22, while the coin now poses an immediate resistance level of $126.08, capped off by the recent high. However, a drop from the cap of the bullish high of last week can be anticipated.

The Bollinger Bands point to a slight decrease in volatility of the coin, compared to the previous week’s incredible rise in volatility, and the Moving Average line shows a mildly bullish market.

The Chaikin Money Flow indicator points to a balance in the money put in versus the money drawn out of Bitcoin Cash, with the CMF line just touching 0.

The Fisher Transform line shows a cross-over into a bearish zone as the Fisher Line has been overtaken the Trigger Line in the BCH market.

1-day

Source: TradingView

The one-day trend line of Bitcoin Cash shows a stabilization spree after the coin’s post-hardfork bearish spree. The coin is experiencing a prolonged downtrend from $626.58 to $130.75, for the better part of four months.

Bitcoin Cash has an immediate support level of $106.38, which the coin hovered around late-January. The immediate resistance level of the coin stands at $132.41, which the coin is just hovering below, and will require another bullish push to break.

The Parabolic SAR points to a bullish swing for the coin, even in the long-run, as the dotted lines are aligned below the coin’s trend line.

The Relative Strength Index shows that investors are increasingly purchasing BCH as the market has switched to green, but the RSI is pointing downwards, indicating a decline in buying pressure. At press time, the coin’s RSI has decreased from 52.51 to 42.68.

The Klinger Oscillator shows that the Bitcoin Cash market is bullish following the recent increase in the price, but the two lines are looking to converge, indicating a switch.



Conclusion:

Bitcoin Cash has managed to retain the bullish wave of the previous week and still managed a fairly bullish high with the price in the $125 bracket, well-above the immediate support of $120.19. However, the short-term bulls do not look to stay as the coin has been edging down against the US dollar compared to the other coins in the market. In the long-term, major indicators point to a slightly bullish trend, following months of fairly stable-price movement.





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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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