The cryptocurrency market opened on February 9 to an incredibly bullish wave following weeks of sluggish movement. Bitcoin Cash [BCH] experienced a bittersweet rise, as the coin pushed above the $2 billion-mark, and added close to $300 million to the market cap, but was surpassed by the ‘digital silver’ Litecoin [LTC], on the back of a remarkable 30 percent increase.
Bitcoin Cash has seen a whopping 11.26 percent price increase against the US dollar in the past 24-hours and the coin’s market cap currently stands at $2.28 billion.
In terms of exchange dominance, LBank takes the top-2 spots, accounting for $39.58 million or 9.58 percent and $32.42 million or 7.85 percent in the BCH/BTC and the BCH/USDT trading pairs respectively. Taking the third spot is BW with 7.53 percent in the BCHABC/USDT trading pair.
The one-hour Bitcoin Cash chart shows an incredible spike in the BCH price, as the collective market rose by $9 billion. Bitcoin Cash saw a massive uptrend during the same stretching from $115.24 to $129.06, following the mid-week downtrend from $115.86 to $111.8.
Bitcoin Cash’s immediate support level prior to the recent rise stood at $110.36, which now stands at $125.37, while the coin now poses an immediate resistance level of $129.25, capped off by the high of the bullish swing.
The Bollinger Bands point to a massive increase in volatility of the coin, and the Moving Average line shows a return of the bulls.
The Chaikin Money Flow indicator points to an increase in the money put into Bitcoin Cash as the market looks bullish.
The Fisher Transform line shows a cross-over into a bullish swing as the Fisher Line has overtaken the Trigger Line in the BCH market.
The one-day trend line of Bitcoin Cash shows a string of stabilization after the coin’s post-hardfork bearish spree. The coin experienced a prolonged downtrend from $626.58 to $130.75.
Bitcoin Cash has an immediate support level of $106.38, which the coin hovered close to in late-January. The immediate resistance level of the coin stands at $132.41, which the coin is just hovering below.
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. At press time, the coin’s RSI has shot up from 32.58 to 51.95.
The Klinger Oscillator shows that the Bitcoin Cash market is bullish following the recent increase in the price.
Bitcoin Cash has been pushed up significantly by the collective market resurgence which has signaled a return of the BCH bulls in the short-run. In the long-run, the coin is inching closer to its resistance level of $130.75, as major indicators point to a bullish takeover for the coin after weeks of sluggish stable 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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