Did the First-Ever Bitcoin Cash Halving Have the Expected Result? – BTC, ETH, LTC Price Analysis, 13 Apr, 2020
On Wednesday, April 8th, the Bitcoin Cash (BCH) halving took place at block 630,000. It was the first-ever halving for BCH and now the amount of newly minted coins as block reward is 6.25 instead of previously 12.5.
Before the halving, some traders and Bitcoin Cash supporters had claimed that the block reward reduction would decrease the inflationary pressure and, thus, the price of the cryptocurrency would increase. However, others had expressed a different point of view and had argued that the number of miners would decline and the ecosystem would become less secure and more vulnerable which could cause a price decrease.
And, although, many miners abandoned the Bitcoin Cash ecosystem, leading to a sharp hash rate drop from 3.58 Ehash/s to 1.43 Ehash/s, the halving turned out to be a non-event from a price perspective – the price of the cryptocurrency neither reacted positively to it nor negatively.
Roughly one day and a half later, on Friday, April 10th, Bitcoin Satoshi Vision halving took place. The effect was quite similar to the one in the BCH ecosystem – the hash rate dropped, but the price of the cryptocurrency remained relatively stable.
On the first day of the current week, the crypto market is under pressure. At the time of writing, according to Coin360.com, one Bitcoin costs €6,188.83 (-1.24%), one Ethereum – €141.32 (-2.07%), and one Litecoin – €37.19 (-3.59%):
Daily crypto market performance. Source: Coin360.com
Now let's check the price charts of the three cryptocurrencies against the euro from a technical point of view.
In the 1-week time frame (1W), last week BTC/EUR formed a «Shooting Star»:
In technical analysis, a «Shooting Star» candlestick is one of the most common trend reversal patterns and it usually occurs when the bears are trying to take control of the market.
That's why we think that within the current week we may witness some dips in the price chart of Bitcoin.
On the 4h-hour chart (4H), the price chart of ETH/EUR is drawing an «ascending channel»:
However, at the moment ETH/EUR is in a correction phase and the price is heading towards the lower line of the channel or approximately €130 per one digital coin.
In the 1-week time frame, the price of Litecoin is quite similar to that of Bitcoin. LTC/EUR formed a «Shooting Star» as well:
In our view, the correlation between the price of Bitcoin and the price of Litecoin will remain relatively high throughout the week. Therefore, the most likely scenario for LTC/EUR is a slight price decline.
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