The sharp correction in Bitcoin (BTC) may have shocked many of the traders that were handed over, but the data shows that the whales and institutions have bought the decline strongly, and now the bulls have shown that they are intent on pushing the bitcoin price well above $ 40,000. The total market value of cryptocurrencies has also recovered to over a trillion dollars.
Dan Moorhead, founder and CEO of Pantera Capital, said it is sticking to its earlier forecast of $ 115,000 per bitcoin by August of this year. Moorhead believes that the development of the digital yuan in China may spur the spread of cryptocurrency and prove it to be a positive factor.
Many altcoins are also turning positive, tracking bitcoin higher. Let’s explore the root causes of growth to determine if there are potential growth targets.
ZEC / USD
European Central Bank President Christine Lagarde recently reiterated her view that bitcoins should be regulated over bitcoin. Regulation can be a double-edged sword, and its opponents have claimed that it has failed time and time again in traditional economics. With the increasing number of regulatory votes, some investors may prefer privacy currencies such as Zcash (ZEC).
The Zcash Foundation wants the community to increase the certification of secure apps and allow transactions with secure Zcash. To that end, the organization plans to accelerate the development of Zebra, a consensus-compliant Zcash node client written in Rust.
Zcash also completed its third major network update, Blossom, on December 11th. The update reduced blackout times by two, allowing for faster transaction verification, lower fees, and doubling the network bandwidth.
As Zcash takes the necessary steps to improve the user experience, the project continues to face challenges due to its brand of privacy. Cryptocurrency exchange Bittrex recently announced that it will remove ZEC along with two other privacy currencies from January 15th. Let’s see if any of these developments work in ZEC’s favor.
ZEC rose from an intraday low of $ 54.3150 on Jan.1 to $ 120.7119 intraday on Jan.13, representing a 122% increase in two weeks. This incline canceled the descending descending triangle, which is a strong bullish sign.
However, the bears are unlikely to give in easily, and are now attempting to defend resistance at $ 125.3626. ZEC / USD can now test its latest breakout level at $ 102.6824.
If the pair bounces off this support, it means that the level has moved to the support level, and this can be used as a starting point for a breakout above $ 125.3626.
If the buyers succeed, the pair could go up to $ 140 then $ 160. A break of this resistance could open the way to a gain of up to $ 220.
Contrary to this assumption, if the bears land and keep the price below $ 102.6824, the decline could extend to $ 84. This decline indicates weak momentum.
KSM / US Dollar
Not only has the recent increase in cryptocurrency pushed up the price of Bitcoin, but it has also curtailed it with alternative currencies that offer solutions to the problems that hinder current projects. Polkadot (DOT) aims to solve compatibility and scalability issues, and traders recently ranked the price among the top five cryptocurrencies by market cap. As reported by his cousin Kusama (KSM).
The upcoming release of Substrate 3.0 will ensure compatibility with Ethereum and is expected to launch in the first half of the year. Modernization could increase Polkadot’s popularity. Meanwhile, the Plasm mesh became the first umbrella in Polkadot’s test network umbrella, Rococo V1. The same code would work for Kusama, and an increasing number of projects wishing to win the Polkadot parachain slot auction can try Kusama first.
Although Kusama is a unique network in its own right, fate will approach Polkadot’s path.
The charts show that KSM is in an uptrend, and the price rose from the January 11 daily low of $ 57,877 to a daily high of $ 85,239 today. This represents a staggering 47.27% growth in four days. Both moving averages are sloping higher and the Relative Strength Index (RSI) is in positive territory, indicating that bulls are in control.