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The Third Halving of Bitcoin is a Fact

The general sentiment in the crypto industry is positive today, as most of the major coins are moving higher. Bitcoin is again flirting with the $ 9000 level, which seems to be a price magnet. And Stellar Lumen, Tron and Monero inextricably follow the main cryptocurrency on green territory after halving event on Monday.

 

There are Still No Fireworks from Bitcoin Halving

The most anticipated event for cryptocurrencies in 2020, the third halving of Bitcoin (BTC), has just come into force. Happening only once every 4 years, the last halving lowered the reward for a Bitcoin block from 12.5 BTC to 6.25 BTC. The Bitcoin network is designed to have only 21 million coins. It is estimated that this will be the catalyst for another bull rally, as more than three quarters of these coins are already in circulation. The impact of halving may reduce the supply of new coins, as miners may have to wait for the price to rise before selling their blocks in order to cover their costs.

BTC/USD buyers took control of the market after four bearish days. On Tuesday, Bitcoin rose more than 3.5% after halving on Monday. However, so far, we have not had a sharp rise in price. The borders of the 20-day Bollinger Bands indicator are beginning to narrow, indicating declining volatility. This morning, BTC/USD found support at the 20-day SMA and continued the upside momentum to the $ 8,965 high.

From a technical point of view, the bulls will now try to break over the 9K resistance. Also watch for possible crossings of the 55- and 200-day SMAs as confirmation. A convincing move above $ 9,000 should lead the price for test to $ 10,000/33.

On the downside, initial support is around $ 8,760, where the hourly SMA 50 is located. A clear break below that level could extend the sell-off to Monday’s low at $ 8,235, followed by $ 8,150.

 

How Does the Crypto Market React to the Third Halving?

Monero closely followed the footsteps of Bitcoin (BTC) and made a profit of 2.8% for the last 24 hours. The rest of the cryptocurrency market is green as buyers focus to extend the prolonging bullish momentum after a disastrous weekend slump. Stellar Lumen (XLM) made the biggest profit of 6.30%, Tron (TRX) rose by 4.09% and Binance Coin grew by 2.93%.

At the time of writing, the total market cap is $ 242.50 billion. Bitcoin dominance is below 67% level. And 24-hour trading volumes amounted to $ 136.45 billion.

 

Monero Technical Analysis

Indicators such as RSI and MACD show a positive picture in the short term for XMR/USD. The RSI is heading north after recovering from support at 30 level. The indicator even managed to break above the midline (50). And with that, XMR buyers should gain the confidence to join the market and increase their positions in anticipation that the $ 68.26 resistance will be brought down. If that happens, the next bulls’ target will be $ 70.50

The same upward trend is supported by the MACD, which has returned to positive territory. A bullish divergence over the MACD may signal a stronger upside momentum in subsequent sessions.

On the other hand, we have immediate support with the 200-day SMA in the region of $ 59.50. A clear break there will take Monero for testing the bottom from Monday at 55.93.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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Bitcoin goes up before halving. Will the momentum persist after that?

BTC/USD bulls retained control for the second day in a row as the price moved in an upside price channel. Just 5 days before Bitcoin halving, the bulls took the key resistance $ 9,140- $ 9,200. Now they are heading for their new $ 9,500 target.

Recently, however, the halving of Bitcoin (BTC) has captured the imagination of the crypto industry and predictions are definitely not lacking. These range from a downside spiral in price that will destroy the Bitcoin network to a parabolic appreciation of the main digital coin. How will this event affect the price action?

 

Here are some possible scenarios for Bitcoin halving and the price:

  1. From a negative point of view, some analysts believe that traders who have “bought the rumor” will “sell the news.” This scenario is possible, but difficult to assess, as traders do not usually share their strategies. In my opinion, this scenario should not have a strong impact on price.

  2. Also, negative would be the scenario in which miners will put sales pressure, dragging the price down. But this case is again unlikely. Because Bitcoin halving means that miners will receive half the Bitcoins for the same work. And this doubles the unforgettable cost of creating the first cryptocurrency.

Miners’ costs are effectively fixed. So, to maintain the same profit margins, they should be encouraged to double the price at which they sell their Bitcoins. I expect that this supply shock will raise the price significantly.

  1. And from here we move on to the most positive scenario. In this case, the ratio of stocks to new flows after halving will cause upward price pressure. This scenario relies on the logic that the combination of Black Thursday (March 12) and the upcoming halving of the block award will push out weak and inefficient miners. The remaining miners will have lower costs and be forced to sell less of the newly created blocks to cover them. This dynamic, combined with the macroeconomic tailwinds provided by global governments and rising inflows into passive investment products such as Bitcoin (which we are currently seeing), could trigger a perfect price rally in the medium and long term.

Of course, there is an option for the halving to be already priced in and to have no impact on the market. But to figure out which scenario will play out, we don’t have to wait too long. There is less than a week left until the big day.

 

Technical analysis of BTC/USD

Although the event is fast approaching and retail investors are feeling more and more bullish, I must remind you something. After falling to $ 3750 on March 13, the price of BTC rose by over 145%. So, the current daily chart picture is starting to look overbought.

In addition, looking more closely at the weekly chart, we will notice that $ 9,500 has proven to be a key level of resistance and support. Overcoming this level is expected to be a challenge. But given the proximity of Bitcoin to the price, a strong jump in volume could put it out of the game. In the short term, traders must monitor the volume of trade and for a break above the daily high of $ 9,375.

In addition, the SMA 20 passed over the SMA 200 to chart a bullish cross. MACD shows an increase in upside momentum. But the RSI indicator is already in the overbought area at 79.50. That means that short-term bearish correction may be around the corner.

On the downside, I expect the $ 9,198 and $ 8,535 levels to provide strong support.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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XRP Skyrockets to the Moon, Bitcoin and Ethereum Following it

 

Cryptocurrency Market Activity is Increasing

The price of Bitcoin (BTC) hit another high at $ 7,924, while the bulls continue to push for a test and breakout of $ 8,000 important level.

Only 13 days are left before mining reward halving of the top digital coin and investors are hoping that Bitcoin can at least go above the 100- and 200-day moving averages (in the region of $ 8,000). This will give the Bulls the opportunity to face another key resistance level of $ 8,500 in short term.

The Altcoins also jumped alongside Bitcoin yesterday. XRP shot up with 8.77%, Ethereum (ETH) added 5.41% and Litecoin (LTC) gained 5.21%. EOS (+3.57%), Tezos (+3.51%), Bitcoin Cash (+3.32%), Bitcoin SV (+2.33%), Cardano ADA (+0.62%) and Stellar Lumen (+0.39%) also found support.

For the rest of the top 20 cryptocurrencies was also a positive day, albeit with smaller profits. The only exception was Tether, which was at a 0.01% loss at the time of writing.

The total market capitalization of cryptocurrencies is now at $ 225.6 billion, with Bitcoin ’s dominance rate at 63.7%.

 

XRP Bulls Crushed Psychological $ 0.20, Restoring Buyers Confidence

The XRP/USD bulls retained control yesterday as the price increased from $ 0.1947 to $ 0.2180. In the early hours of Wednesday, the pair managed to break above the upper line of the 20-day Bollinger Bands.

Currently, several technical indicators provide an upward picture for XRP. MACD is showing an increase in the momentum as the RSI rose from 57.25 to 67.75 after the price action on Tuesday. On the 4-hour chart, the price moves above the 200 and 55-day SMAs, which should provide support if the market moves away. And a break above 200 SMA on a daily chart was also very important for last week’s price action.

The nearest resistance is expected at $ 0.2288 (50-day SMA), followed by 61.8% Fibo correction. If Ripple manages to break above that Fibonacci level (61.8% correction on the drop from 0.3455 to 0.1060), the upside momentum should continue.

In other words, the recovery is expected to peak at $ 0.35 in May, mainly riding on the volume likely to be generated by speculation surrounding the Bitcoin halving.

However, as the price is now moving above the Bollinger Bands on a daily chart and RSI is entering a overbought zone, this indicates that the asset is currently overvalued and may be facing bearish correction soon. And if the retreat is deeper, XRP will likely find support at 38.2% Fibonacci at $ 0.1970. A persuasive move there will send the price down for testing the bottom of April 16 at $ 0.1750.

 

ETH/USD Movement Above $ 200 Can be Explosive

The price of Ethereum has also risen and, over the past 48 hours, has maintained gains over $ 190. Early on Wednesday morning, ETH/USD was able to break above the important $ 200 resistance.

Ethereum’s uptrend is supported by RSI, which is pointing up and now is at 68.74. Despite the recovery since mid-March lows, the indicator failed to reach the overbought condition (break above the 70 level). Therefore, ETH/USD still has room for growth before the reversal occurs.

If Ethereum manages to remain convincing and close daily above $ 200, upraise to $ 300 could be an option. Especially with the volatility accompanying the Bitcoin halving in May. In addition, MACD also shows a steady upward momentum.

In the event of a change in the short-term bullish trend, ETH/USD will seek asylum at $ 172.50 (the 200-day SMA) and $ 153.53 (the 50-day SMA).

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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