Game Is On Again For Bitcoin, ETH, XRP, And XLM – Forbes

INDIA - 2019/10/23: In this photo illustration a popular decentralised digital currency Bitcoin logo ... [+] displayed on a smartphone. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)

After a series of sell-offs, major cryptocurrencies are in a rally mode that reminds 2016.

Over the last twenty-four hours, Bitcoin has gained 21.74%, ETH 9.26%, XRP 3.12%, and LTC 10.90%. The rally has spread across the entire cryptocurrency market, with 60 out of the top 100 cryptocurrencies advancing.

What can explain this change in the game for major cryptocurrencies? Halving, according to Daniel Haudenschild, CEO ofSIBEX.

"We are coming into a time where the Bitcoin price is being affected by halving, withBitcoins inflation rate recently dropping from 3.8% to 1.8%, he says. Prices typically increase significantly leading up to the halving and have been followed both times by a 10x move just a few weeks later. The2016 halving started a rally that brought BTC prices from $600 to $19,000 just one month after the halving.

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Thats why all eyes should be on Bitcoin for clues into the future. The BTC price is still the major factor in alt coin prices, he adds. Recent downward corrections are symptoms of large block movements in a market with no functioning OTC infrastructure. However, these are minor compared with the rally normally associated with a halving."

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Meanwhile, theres the abundance of liquidity, which fuels speculation in all risky assets. NASDAQ shares, for instance, has been rallying to new highs in recent weeks.

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And there are seasonal factors, which create a bullish sentiment for risky assets.

Still, technical analyst, Nicholas Pelecanos, Advisor toNEM Ventures, sees the digital currency to be range bound for the rest of the year. "Bitcoin has broken to new lows that we have not seen since June. Currently we are seeing a fairly clear bullish divergence in the BTC price, but I would not be surprised if the recent lows are retested in the short to medium term. After the 50% fall in price from the highs set earlier this year, Im largely expecting the BTC price to range until the end of the year.

While this pattern could scare away investors, it could be good for traders. This does not mean that trading opportunities wont be abundant, as a BTC range can be greater than 30% from the support to the resistance and generally a flat BTC allows for more capital to flow into ALTs."

Provided, of course, that these traders can time the market.

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Game Is On Again For Bitcoin, ETH, XRP, And XLM - Forbes