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Cryptocurrencies enjoyed major gains recently
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DASH more than doubled in value
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Bitcoin halving could start another bull market
Cryptocurrency market is nearing the end of a stellar week. During the past couple of days capitalization of the digital asset market increased over $30 billion, or around 14%. Bitcoin rallied 11% following a break above the upper limit of the downward channel and has set the tone for altcoins, some of which doubled in value. However, there are not any reports that could justify this jump on a fundamental level.
DASH
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Source: xStation5
DASH is a true leader of an ongoing upward impulse. The altcoin gained around 130% in just two days. Rally was halted near the resistance at 135. However, a pullback has occurred following this steep rise and the coin moved back to the 115 handle. A point to note is that this coin has been trading in a downward trend for almost two years. A break above the upper limit of the Overbalance structure (green box) could herald a bigger upward move. In such a scenario, one should focus on the previous peak at 186 USD.
RIPPLE
Source: xStation5
Ripple is also making moves this week. The altcoin trades in an upward channel and has ended correction at 0.22 handle recently. The ongoing upward impulse has pushed the price 6% higher and a test of recent highs at 0.24 could be on the cards now. A point to note is that this level coincides with the upper limit of the channel therefore resistance there could be strong. Should the coin start to decline, one should focus on the aforementioned 0.22 level in the first place. In case it fails to stop the bears, attention will shift to the lower limit of the Overbalance structure at 0.2170.
Will cryptocurrencies rise after Bitcoin halving this time?
Another halving milestone for Bitcoin is approaching. Block no. 630000 is expected to be solved near mid-May and rewards to miners will be halved afterwards. The move is aimed at limiting inflation on the digital currency. A point to note is that the previous two halvings were succeeded by Bitcoin bull market. The first such bull market pushed Bitcoin 1700% higher while the second saw digital coin price increasing by 3600%. Having said that, cryptocurrencies may be ahead of another major rally should the history repeat itself. However, traders should keep in mind that those gains were realized over the long time frame as both aforementioned bull markets lasted around 1000 days.
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