The cryptocurrency market’s sudden uptrend has put a smile on the faces of users and investors as prices have shot up after an extended bear run. The top ten cryptocurrency club including Bitcoin [BTC], XRP and Ethereum [ETH] have all shot up, elevating their market cap as well as their trading volume.
XRP’s price hike is clearly visible on the charts as the trend line shows an acute climb. The uptrend caused the price to move from $0.296 to $0.3216. The support has been holding at $0.292 while the resistance is at $0.322.
The Relative Strength Index shows a market spike on the chart, breaching the overbought zone and settling just below it. This is a sign of the buying pressure being more than the selling pressure.
The Awesome Oscillator too displays a significant climb as the market momentum has been swayed by the arrival of the bulls.
The one day graph for XRP has still not taken the side of the bull as the downtrend is much more apparent. The downtrend resulted in the prices dropping from $0.516 to $0.316 while the support has been holding at $0.263.
The Chaikin Money Flow indicator shows a vertical spike to reach the zero line after which there have been sporadic bullish and bearish signals. The hold below the zero line is an indication of the capital leaving the market being more than the capital coming into the market.
The Bollinger bands have taken a constricted pipe-like shape after the majoritarian sideways movement of prices. The upper band and the lower band have started a slight divergence which means that a trend change is imminent.
The above-mentioned indicators all show XRP recovering from its bearish drudge which is evident even in the increase in market momentum. The only cause for concern is the duration of the bull run, which the signs point to being a short one.
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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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