Price Analysis 5/1: BTC, ETH, XRP, BCH, BSV, LTC, BNB, EOS, XTZ, XLM – BTC Ethereum Crypto Currency Blog

Most major cryptocurrencies are facing resistance at higher levels, meaning a few days of consolidation could be needed before the rally can resume.

The total crypto market capitalization has jumped from about $198 billion on April 22 to over $263 billion on April 30. This 32% rally in roughly eight days shows that investor sentiment is bullish. While this is a positive sign, the problem is that most people expect a repeat of the previous bull run. But with coronavirus still not reigned in, investors are likely to sway between extreme optimism and pessimism. Therefore, any up move is likely to have its share of sharp pullbacks.

Crypto pioneer Charlie Shrem painted a bullish picture for Bitcoin (BTC) due to the upcoming halving and the massive quantitative easing seen across the world. Shrem pointed out that during the previous halving the price did not double instantly but it started a bull phase that resulted in a massive rally. Therefore, he anticipates that it might take about one to two years for the complete impact to be felt.

Daily cryptocurrency market performance. Source: Coin360

Most major cryptocurrencies have fared exceedingly well in the current crisis when the traditional markets such as equities and crude oil have crumbled. This is likely to attract a lot of institutional investors into this space.

Top venture capital firm Andreessen Horowitz has raised $515 million, $65 million more than its initial goal of $460 million, for its second crypto-oriented fund. This shows the growing interest of institutional investors in the asset class. The reports from several countries and the top crypto exchanges also show that people’s interest in crypto has surged during the current crisis.

Due to this, job openings in the crypto sector have increased while “the traditional system seems to be completely breaking down all over the world,” according to Kraken co-founder and CEO Jesse Powell.

BTC/USD

Bitcoin (BTC), the top-ranked cryptocurrency on CoinMarketCap, surged above the overhead resistance of $8,175 on April 29. That was followed the next day by another move higher that carried the price above $9,200. However, the bulls could not sustain the higher levels as short-term traders booked profits following the sharp rally.

BTC–USD daily chart. Source: Tradingview

However, the positive thing was that the bulls bought the dip to $8,401.06 on April 30. Today, the bulls again pushed the price above $9,000 but they have not been able to sustain the higher levels.

This suggests that the bears are aggressively defending the $9,200 levels. This could result in a drop to the next support at $8,175.49, which is likely to be defended aggressively by the bulls.

If BTC bounces off the current levels or $8,175.49, the bulls will make another attempt to propel it above $9,200. If successful, a rally to $10,000 is possible.

However, if the bulls struggle to scale the price above $9,200, then traders can book profit on about 70% of the long position. The rest of the position can be held with a deeper stop loss, just below the 20-day exponential moving average ($7,626) and as the moving average moves up, the stops can be trailed higher.

This bullish view will be invalidated if the price turns down from the current levels and plummets below $7,454.17.

ETH/USD

Ether (ETH) broke above the ascending channel on April 29 but the bulls could not sustain the price above the channel. On April 30, the price again dipped back into the channel.

This suggests that the bears are still active at higher levels.

ETH–USD daily chart. Source: Tradingview

Currently, the bulls are again attempting to push the second largest cryptocurrency market capitalization above the channel. If successful, it will suggest that the bulls have successfully overpowered the bears.

The ETH/USD pair is likely to pick up momentum on a break above $227.097. Above this level, the up move can extend to $250 and then to $289.599.

Conversely, if the pair turns down from the current levels, it is likely to drop to the 20-day EMA ($186). Traders can keep the stops on 50% of long positions at $200 and the rest at $185, just below the 20-day EMA.

XRP/USD

The rally in XRP turned around from $0.23612 on April 30. However, the positive thing is that the bulls have successfully defended the breakout level of $0.20570. This suggests that the bulls are buying on dips.

XRP–USD daily chart. Source: Tradingview

If the price sustains above $0.20570, the bulls are likely to make another attempt to push XRP, which is the ranked third on CoinMarketCap, above $0.24560. If successful, a rally to the downtrend line at $0.28 is possible.

However, if the price turns down from $0.24560 once again, a few days of range-bound action is possible.

Therefore, traders can book partial profits on the long positions close to $0.24560 if the bulls struggle to break out of this resistance. The stops on the remaining positions can be kept at $0.19. A break below the 20-day EMA will shift the advantage in favor of the bears.

BCH/USD

Bitcoin Cash (BCH) rallied close to the overhead resistance of $280.47 on April 30 but could not break out of it. The altcoin turned down from $276.27. However, the positive thing is that the bulls are attempting to defend the previous resistance turned support of $250.

BCH–USD daily chart. Source: Tradingview

The bulls are likely to make another attempt to push the price above $280.47. If successful, BCH, the fifth largest cryptocurrency on CoinMarketCap, is likely to pick up momentum and rally towards $350.

However, if the bulls fail to propel the price above $280.47, a few more days of range-bound action is possible. Traders can trail the stops on the long positions to $230 because if this level breaks, a drop to $200 is possible.

BSV/USD

Bitcoin SV (BSV) turned down from the $227-$233.314 resistance zone on April 30. This shows that the bears are active at higher levels. However, the bounce off $201.17 on April 30 suggests that the bulls are buying on dips.

BSV–USD daily chart. Source: Tradingview

This suggests that BSV, the sixth-ranked cryptocurrency on CoinMarketCap, is likely to remain range-bound for a few more days. 

A break above $233.314 will indicate that the bulls have overpowered the bears. Above this level, a rally to $268.842 is possible.

Conversely, if the bears sink the price below the support at $203.40 and the 20-day EMA ($195), a drop to $187.160 will be on the cards. Therefore, the stop-loss on the long positions can be trailed higher to $195.

LTC/USD

Litecoin (LTC) broke above the overhead resistance of $47.6551 on April 29 but could not build upon it. The altcoin turned around from $50.7864 on April 30 and dropped below the breakout level of $47.6551, which suggests that bears are selling aggressively at higher levels.

LTC–USD daily chart. Source: Tradingview

Nevertheless, the dip to $45.5444 on April 30 was purchased and the bulls will once again attempt to push the price above the $50.7864-$52.2767 resistance zone. If successful, a rally to $63.8769 is likely.

Conversely, if the bears again defend the overhead resistance zone, the seventh largest cryptocurrency by market cap might extend its stay inside the range for a few more days. For now, the stops on the long positions can be maintained at $42.

BNB/USD

Binance Coin (BNB) broke above the overhead resistance of $17.4775 on April 30 but the bulls could not sustain the breakout and the price again dipped back in. Currently, the bulls are again attempting to scale and sustain the price above $17.4775.

BNB–USD daily chart. Source: Tradingview

If successful, BNB, ranked eighth on CoinMarketCap, is likely to pick up momentum and rally to the next overhead level of $21.50.

With the 20-day EMA sloping up and the relative strength index sustaining above 60 level, the advantage is with the bulls. The first sign of weakness would be a break below the 20-day EMA ($15.90). Therefore, traders can trail the stop-loss on the long positions to $15.50.

EOS/USD

EOS rallied close to the overhead resistance of $3.1802 but failed to scale above it on April 29 and 30. Although the drop from this level broke below the breakout level of $2.8319, the price quickly rebounded.

EOS–USD daily chart. Source: Tradingview

This suggests that the bulls are attempting to defend the $2.8319 support level. If the bulls can carry the price above $3.1802, the uptrend is likely to resume. Above this level, the next target objective is $3.8811.

Conversely, if EOS, the ninth-ranked cryptocurrency on CoinMarketCap, turns down from $3.1802 once again, a few days of range-bound action is possible. Therefore, traders can book partial profits if the bulls struggle to break out of $3.1802 and keep the stop-loss on the rest of the long position at $2.50.

XTZ/USD

Tezos (XTZ) broke above the overhead resistance of $2.8969 on April 29 but the bears dragged it back below $2.7529 on April 30. This suggests that sellers are active at higher levels.

XTZ–USD daily chart. Source: Tradingview

However, with the 20-day EMA sloping up and the RSI trading near the overbought zone, the advantage is with the bulls.

Therefore, the bulls are likely to make another attempt to carry XTZ, which is ranked tenth on CoinMarketCap, above $2.8969-$3.0603 resistance zone. If successful, a rally to $3.2712 is likely. For now, the stop loss on the remaining long positions can be kept at $2.55.

XLM/USD

The bulls are facing stiff resistance at $0.073434 for the past two days. Though Stellar Lumens (XLM) turned down on April 30, the bulls stepped in to buy at $0.065546, which suggests demand at lower levels.

XLM–USD daily chart. Source: Tradingview

If the bulls push the price above $0.073434, a rally to $0.089238 is likely. This is likely to be a huge barrier to cross as the eleventh largest crypto-asset by market capitalization has turned down from this level thrice before (marked as ellipses on the chart).

Conversely, if the bulls fail to scale and sustain the price above $0.073434, a few days of range-bound action is possible. A break below the 20-day EMA ($0.059) will indicate that the trend has shifted in favor of the bears.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Original Article
Author: btcethereumadmin

What is the Bitcoin Halvening and Why It Matters – CoinCentral


The Bitcoin Halvening (or halving) is a significant moment in Bitcoin’s history. Bitcoin’s Halvening is a pre-programmed event that protects Bitcoin from inflation and helps ensure a degree of scarcity for the digital asset. 

Before we get into the thick of the Bitcoin Halvening discussion, let’s take two minutes to go over some quick halvening questions. Then, we can get into the juicy stuff.

What is the Bitcoin Halving? 

The Bitcoin Halving is an event pre-determined by Bitcoin’s programming where mining rewards are cut in half. Basically, the amount of BTC miners can earn as a reward for validating the next Bitcoin block is cut in half. 

In the 2020 halvening, the mining subsidy is going to be split from 12.5 BTC to 6.25 BTC. 

Why is the Bitcoin Halving Important? 

Bitcoin’s many Halving events seek to give the asset an element of “scarcity” to protect its long-term value. Bitcoin would become nearly as scarce as gold. 

This Bitcoin Halving event will cause the asset’s inflation rate to drop to 1.8%, making it lower than the inflation rate of the U.S. Dollar. This is particularly notable in 2020, as the United States has been printing trillions of dollars in economic stimulus packages to tackle the economical chaos caused by the COVID pandemic. 

“The Halving is an important event for Bitcoin, but it’s just one element in the perfect storm that BTC is enjoying at the moment,” comments Alex Mashinsky, CEO of Celsius Network. “Governments around the world are implementing unprecedented fiscal stimulus, which risks causing high inflation across fiat currencies, which reinforces Bitcoin’s value proposition as a deflationary asset. As a result, many first time retail investors are flocking to BTC as a way to protect their wealth.”

Every future Halving will make Bitcoin more scarce. Since we primarily see BTC’s value as a relation to USD, we have two diametrically opposed forces that point to a higher Bitcoin price.

Halving events tend to come with a flood of industry price speculation, which mostly assumes the Halving event will cause a surge in Bitcoin’s price. 

How Many Bitcoin Halvings are there? 

Halvings occur every 210,000 blocks until the block mining subsidy reaches 1 satoshi, the smallest unit of bitcoin (0.00000001 BTC). Once the final Halving event occurs, the next block subsidy drops to zero, and miners will no longer be awarded block mining subsidies but can still collect transaction fees. 

The last Bitcoin halving is expected to be in 2140. Be sure to read our article about it then– don’t forget! 

There are about 18,355,462 BTC in circulation right now. 

Notice the slight curves due to prior bitcoin halvenings

Notice the slight curves due to prior bitcoin halvenings

When is the Bext Bitcoin Halving? 

Bitcoin’s next Halving event is expected to occur in May 2020, with various sources targeting a May 12th to May 16th date range.

Bitcoin Halving Dates History

There have been two Bitcoin Halvings– one in 2012 and one in 2016. 

2012 Halving

The first Halving occurred on November 28th, 2012. The halving block was mined by SlushPool by a miner using a Radeon HD 5800 miner.

The BTC block reward dropped from 50 BTC per block to 25 BTC per block. 

Bitcoin’s Price on 2012 Halving Day: $12.35

Bitcoin’s Price Price 150 Days Later: $127.00

Price gain: 928.34%

2016 Halving

The second Halving happened on July 9th, 2016.

The BTC block reward dropped from 12.5 BTC per block to 12.5 BTC per block. 

Bitcoin’s Price on 2016 Halving Day: $650.63

Bitcoin’s Price 150 Days Later: $758.81  

Price gain: 16%

  • 2009 – Blocks 1-210,000 earned 50 BTC in rewards.
  • 2012 – Blocks 210,001 – 420,000 earned 25 BTC in rewards.
  • 2016 – Blocks 420,001 – 630,000 earned 12.5 BTC in rewards.
  • 2020 – Blocks 630,001 – 740,000 will earn 6.25 BTC in rewards.
  • 2024 – Blocks 740,001 onward will earn 3.125 BTC in rewards.
  • ~2140 – all 21 million bitcoins will have been mined; the reward will be 0.

It’s worth noting that just because the BTC reward is lower doesn’t make mining any less attractive. Bitcoin’s price has increased throughout the years. Earning the block reward in 2016 was worth about $16,250, whereas the new block reward post-Halving 2020 would be worth about $53,125.

Why Halve Bitcoin?

A common question many have is why not keep the bitcoin reward the same throughout its existence? The answer brings us to the concept of scarcity. 

Bitcoin Scarcity: A Delicate Balance

If Bitcoin were to keep the reward consistent at 50 BTC, that would mean only 420,000 blocks would offer the reward until the 21 million BTC cap is hit, which would have happened at some point in 2016. 

This would have been extremely detrimental to Bitcoin’s user adoption since the technology was still relatively new and only a small minority of the population would hold the vast majority of the Bitcoin. 

At first, an early decrease in accessibility might make Bitcoin seem to be more valuable, but ultimately, this would repel many early-stage users. If there are fewer people capable of using it, then the digital asset would essentially be trapped in a gilded cage of low liquidity. 

Following along the trail of events, low liquidity would increase the risk of holding the asset, chipping away at its inherent value. 

The supply and demand among the small group of Bitcoin hoarders would determine the price. 

The price of BTC would be artificially inflated and holding (hoarding BTC) becomes a game of hot potato. Any individual whale with massive holdings could tank the price at any moment, further increasing the volatility risk of the asset. 

One of the core drivers of Bitcoin’s price is user adoption, and by placing such unreasonable hurdles on new users (high volatility and high costs to enter the Bitcoin ecosystem), few newcomers would venture into relatively unfamiliar cryptocurrency territory. 

With so many comparable digital assets such as Litecoin, user adoption would not bode well for Bitcoin.  

One the other side of the scarcity extremities, we could remove the 21 million cap to understand Bitcoin’s mechanics. 

If Bitcoin were to keep the reward at 50 BTC but removed the 21 million cap, there would be a theoretical infinity of BTC available on market over a long enough time frame. This would flood the markets in the long-term creating an essentially worthless digital asset. Each new year would theoretically slightly devalue the asset. If you need any real-world evidence, just take a look at the Venezuela cryptocurrency situation and why so many Venezuelans have embraced Bitcoin.

The 21 million cap and the periodic halvening events help to ensure that Bitcoin offers users the best of both value retention and usability. 

How Will the Halving Affect Bitcoin’s Price?

If you’ve been reading CoinCentral for a while, you’ll know we don’t speculate on asset prices. We’ll leave that to the Twitter day traders that soundlessly delete their tweet predictions when wrong. Trixy hobbitses.

However, there are a few logical arguments that can be made for Bitcoin’s price moving in either direction. Bitcoin’s price did increase after the first two halvings, but it’s hard to tell whether this is merely correlation or causation. 

Will there be a price jump after bitcoin halvening 2020? Only time will tell.

Will there be a price jump after bitcoin halvening 2020? Only time will tell.

That being said, many influential and respectable figures in the space have made price predictions, many of which are predicated on Bitcoin being a scarce asset. 

Billionaire venture capitalist Tim Draper, for example, predicted a $250,000 Bitcoin by 2022. 

Ex-Goldman Sachs hedge-fund manager Raoul Pal, recently claimed Bitcoin’s price could hit $1 million before the next halving event in 2024.

But take any prediction on the Internet with a spoonful of salt. John McAfee, for example, made a lot of noise with a $1,000,000 bitcoin prediction but soon backed out once proven wrong by the test of time.  

In a pure vacuum where only basic market forces and mathematics prevailed, Bitcoin’s price would go up after a halvening because of scarcity, but the reality is far more complicated than that. In lieu of us jumping into a rabbit hole here, feel free to shoot us an email if you’d like us to go into greater detail in another article.

Final Thoughts

Regardless of its impact on price, the Bitcoin halvening is a unique piece of digital asset history. By sheer resilience, Bitcoin has proven countless doubters and antagonists wrong. Each successful milestone of its programming keeps Bitcoin on its path to being a resilient, decentralized, and global means of exchange and store of value. 

In 2016, I didn’t participate in the halving and all things considered, it was a minor event,” comments Catherine Coley, CEO of Binance.US. “The real rally happened 18 months later. On the whole, I’m bullish on Bitcoin long-term, whether not this event changes the prices noticeably or not. With unemployment and stimulus funding flooding our USD system, I think more people are looking for an alternative exposure to a market that’s unrelated to USD.”

The halving doesn’t require much, or any action, on your part. If you hold the digital asset, it’s worth your while to develop a more intimate understanding of how it works. Learning this unlocks the flood gates to better understanding global monetary policy in an increasingly more tech-enabled, a crucial lesson given the current economic conditions. 

To get a better understanding of Bitcoin, read our Bitcoin guide or Bitcoin for dummies guide. 

This article is Originally posted on CoinCentral.com
Author: Alex Moskov