Bitcoin Cash, Polkadot, DASH Price Analysis: 09 January
It’s been a good few weeks for much of the crypto-market. With Bitcoin climbing to touch a new ATH every other day, most of the market’s altcoins have followed suit to note hikes of their own. However, while there is a lot of momentum behind the world’s largest cryptocurrency’s rally, the same cannot be said for these alts. In fact, at the time of writing, cryptos like Bitcoin Cash and Polkadot were already correcting themselves on the charts.
Bitcoin Cash [BCH]
The world’s largest cryptocurrency’s most popular fork, Bitcoin Cash has often replicated the movements of BTC on the charts. The past few weeks were no different, even if the scale was. However, since the reasons behind BCH’s hike were largely correlational and not organic, such a hike wasn’t to last. In fact, over the past week alone, BCH dropped by almost 7% on the charts, after climbing by 33% in the first place.
Despite these corrections, however, the cryptocurrency was trading at its February 2020 price levels.
As far as the technical indicators are concerned, while the Parabolic SAR’s dotted markers were well below the price candles and pointed to a bullish market, the MACD line was closing in on the Signal line.
Going into 2021, quite a few people expect BCH to do well, with Roger Ver recently claiming that the cryptocurrency will touch $100,000 by the end of the decade.
Since its emergence last year, Polkadot has shot up on CoinMarketCap’s charts, with DOT ranked as high as 7th. It should be noted, however, that while DOT’s market cap has impressed many, its 24-hour volume is still dwarfed by many cryptos well below it. Like Bitcoin Cash, DOT too saw a lot of volatility on the back of Bitcoin’s movement, with DOT climbing by over 22% before falling by over 8% in a week.
At press time, valued at $9.16, DOT was recording YTD returns of 69.98%, with the cryptocurrency’s recent price performances also backed by a significant uptick in volumes.
The scale of the movement on DOT’s charts was highlighted by the crypto’s technical indicators, while the Bollinger Bands continued to underline a significant degree of volatility, the Awesome Oscillator registered a lot of market momentum, even though the latest bars on the histogram flashed red.
It should also be noted that apart from Bitcoin, there might be a more organic reason behind DOT’s hike. Just last week, Binance announced a $10M fund to support projects on the Polkadot ecosystem.
One of the market’s popular privacy coins, DASH’s price movements were very contrary to those noted by the likes of Bitcoin Cash and Polkadot. In fact, while the aforementioned cryptos registered corrections after hiking, DASH hadn’t recorded any corrections of note, at the time of writing. It should be noted, however, that the privacy coin is still trading well below the levels it set last year. This means that if DASH was to follow Bitcoin’s lead even more, there will be significant upside there.
For DASH, the Relative Strength Index was mediating between the overbought and oversold zones. On the contrary, the Chaikin Money Flow was continuing to drop sharply under zero, a sign of how significant capital outflows in the market have been.
With Bittrex announcing the delisting of DASH and other privacy coins on the 15th, it’s only a matter of time before the crypto’s price charts take account of the development.