Kaspa’s (KAS) Ascending Channel Mimics Early Bitcoin – Does This Mean a Repeat of BTC’s Monster Rally is Coming?
In a recent Twitter thread, Jim, S𐤊i ₿um, a crypto analyst, drew some compelling comparisons between the early days of Bitcoin (#BTC) and the current trajectory of Kaspa ($KAS). The analysis delves into both the technical and fundamental aspects of these cryptocurrencies, offering a nuanced look at their potential futures.
What you'll learn 👉
Technical Similarities: Ascending Channels and Bull Market Support Bands
According to Jim, S𐤊i ₿um, both Bitcoin and Kaspa have shown similar patterns of staying above their respective 20/21 week SMA/EMA, commonly known as the bull market support band. For Bitcoin, this pattern was observed in 2010 and 2011, and it ultimately led to a breakout and a staggering 50x rally off the last touch of the bottom of the ascending channel. Kaspa is currently exhibiting a similar pattern, bouncing off the bull market support band and continuing to trend upward.
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Show more +Fundamental Parallels: Fair Launch and Scalability
The similarities between Bitcoin and Kaspa don’t end with their technical aspects. Jim, S𐤊i ₿um, also pointed out that both cryptocurrencies had a fair launch, starting at a $0 market cap with no pre-mining or ICOs involved. Kaspa has already put 70% of its coins into circulation due to its fast emission schedule, which includes monthly mining reward reductions. This is in contrast to Bitcoin’s 4-year mining reward reductions.
Kaspa’s Groundbreaking Technology
Kaspa is also the first proof-of-work (PoW) cryptocurrency to scale securely, processing one block per second and soon increasing to ten blocks per second, while maintaining robust security measures. According to Jim, S𐤊i ₿um, this is truly groundbreaking technology that fulfills Satoshi Nakamoto’s original vision of peer-to-peer electronic cash at the base layer.
Conclusion: The Future of Kaspa
Jim, S𐤊i ₿um, concluded by stating that if any cryptocurrency has the fundamentals to rival Bitcoin, it’s Kaspa. With its fair launch and ground-up growth approach, Kaspa seems poised for significant future developments. While the past performance of Bitcoin does not guarantee the same outcome for Kaspa, the similarities in both technical and fundamental aspects make this an intriguing comparison that could have implications for Kaspa’s future trajectory.
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