Yesterday’s BTC mini crash is surely a blow to altcoins. In a 24 hour span, BCH recorded a 16 percent lose breaking below $600, crashing stops and confirming the bear break out pattern set by Aug 8 bears. That’s aside from signaling the completion of a retest phase and a probable ignition of the trend resumption stage that could drive prices towards $300. All in all, on chain developments and BTC whale shorts aren’t supportive of BCH.
From the Market
The cryptocurrency bug is spreading and as a solution that is specifically designed to replace government issued currencies, it is slowly but surely sinking their roots deeper in economies whose citizens have to contend with life-savings wiping hyper-inflation. Most of these economies are facing tough sanctions from Uncle Sam pushing innocent citizens to the edge. It’s in this desperation that they find cryptocurrencies as Bitcoin Cash a safe haven.
Bitcoin Cash fits the bill perfectly and going by arguments between the two rivaling groups—nChain and Bitcoin ABC, both want to fulfill Satoshi’s objectives. This means their overall goal is to steer BCH into the medium of exchange route and not a store of value like BTC. This inevitably means making hard choices.
Some of them include implementations of infinite block size increment and reactivation of several operation codes to make the network scalable and settle transaction fast—partly why there is zero config argument in place. Though it is getting personal, after Craig Wright—who is regarded as faketoshi—blocked Roger Ver in Twitter, it shows how there is decentralization of development power in the network.
Statistics shows that BCH enjoy widespread use in Venezuela, Iran and Cyprus– where Roger earlier mentioned how thousands of merchants plan to support BCH in by November of this year. His video comments were days after the pro-Satoshi protocol introduced the first Bitcoin Cash support network in the country. This on top of Roger Ver re-assertions that BCH is better investment than BTC.
Dropping BTC in favor of BCH is a growing trend among business that actually want to use Bitcoin as a peer to peer electronic cash system. @FuzeX_co and @BitcoinCom are just two of many more to come.https://t.co/WZCEhjVJ18
— Roger Ver (@rogerkver) August 28, 2018
Bitcoin Cash (BCH) Technical Analysis
There was a glimpse of bulls in an already bearish market after last week’s. After printing a nice three bar bullish reversal pattern, the morning star, at around our main support trend line at $600, many were expecting a confirmation of that bullish move.
Further steeling this projection is week ending Aug 19 high volume doji candlestick and the consequent higher highs one week later. However, looking at the chart, it appears that Bitcoin Cash bulls don’t stand a chance perfectly fitting in a contrarian move that would see prices dip rather than rise towards our main support and bear target level at $600. So far, bears have fully recovered last week’s gains triggering stops in the process.
Of interest in our Bitcoin Cash analysis is not yesterday’s flash loss that saw BCH lose 16 percent in a matter of hours after retesting $600. It’s Aug 8 bear candlestick and from our BCH trade plan iterations, our conservative longs largely depended on strong close above $600. After Sep 1 bullish engulfing candlestick, our longs were triggered only to be hit yesterday.
Nevertheless, the overall trend and volumes behind yesterday’s move makes this counter trend move worthy now that sellers are back after a brief correction in a deep eight month move. We propose selling at spot rates with stops at $600 and targets at $300 now that the third phase of a bear break out candlestick is live.
Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.