The week began with Ethereum [ETH], the second largest cryptocurrency by market cap, glowing both red and green. According to CoinMarketCap, at press time, the cryptocurrency was trading at $139.44, with a market cap of $14.68 billion. The coin recorded a trading volume of $4.09 billion over the past 24 hours, and a rise of around 2% in the past seven days.
In the one-hour chart, the cryptocurrency displayed a downtrend from $142.52 to $140.19. The uptrends for the coin were pictured from $137.51 to $142.52, and from $131.40 to $136.11.
The immediate resistance for the coin stood at $140.21, and strong resistance was at $142.56. The coin laid its immediate support at $135.11, and strong support at $129.27.
Bollinger Bands indicated a highly volatile market for the cryptocurrency as the bands diverged from each other.
RSI indicated that the buying pressure for the coin was proportionate to the selling pressure in the market.
MACD predicted a bearish market for the cryptocurrency, with the moving average line moving south after meeting the signal line.
In the one-day chart, the downtrend for the cryptocurrency was recorded from $218.66 to $157.55, and further down from $157.55 to $140.49. The uptrend for the coin was outlined from $83.74 to $103.22, and further up to $131.40.
The immediate resistance for the cryptocurrency was at $140.52, and strong resistance was at $157.75. The coin’s immediate support was at $125.18, while strong support was seen at $82.59.
Klinger Oscillator showed that the bull successfully pulled the coin from the bear’s grip, as the reading line moved above the signal line, after a crossover. However, the lines were on the verge of another crossover, which could result in a trend reversal.
Chaikin Money Flow line was above the zero mark, opening the doors for a bull run in the coin market as money was starting to flow back into the market.
Parabolic SAR’s dotted lines aligned below the candlesticks, indicating a bullish phase for the coin.
The market finally decided to give the bull another chance, with most indicators for the coin favoring it. The bear was only left with the MACD, from the one-hour chart.
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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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