Bitcoin Cash [BCH] seems to be stuck between the bull and the bear with the cryptocurrency’s price moving sideways. The cryptocurrency, which was in the news multiple times for the upcoming hard fork, also broke a long-standing resistance, after which the price had fallen.
Bitcoin Cash had seen the uptrend from $585.84 to $626.99. The current downtrend that the cryptocurrency is suffering has pulled the price from $611.23 to $587.59. The support has been holding at $407.221, while the resistance has been formed at $633.12.
The Awesome Oscillator graph has seen a relative reduction in market momentum, which is still tending towards the bullish zone.
The Chaikin Money Flow indicator has just fallen into the bear zone after staying above the axis for some time. The fall below the axis indicates that the money has started moving out of the market due to the change in the investor sentiments.
The one-day graph indicates a downtrend, which has brought the prices down from $867.67 to $421.18. The recent uptrend has also lifted the prices from $446 to $629.92.
The Relative Strength Index [RSI] indicator has fallen between the graph after it breached the overbought zone. This is a sign of the buying pressure just reducing among the investors.
The MACD indicator points to both the signal line and the MACD line both moving up, a sign that the prices are climbing. The current MACD histogram is also bullish.
Bitcoin Cash’s surge does not seem to be replicated anytime soon, with the indicators showing that the cryptocurrency will undergo a slight bullish spike interspersed with sideways price movement.
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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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