Before yesterday, Bitcoin Cash (BCH) bull momentum was strong and our expectation was that BCH buyers would edge above $850 as our buys went live. That didn’t come to pass and after periods of lower time frame accumulation, we might see BCH thrusting above $850 and ushering in buyers later today.
From the News
Well, well, well… Bitcoin Cash often spurs drama and it all has to do with Bitcoin.com claims of authority and that “millions” around the world view the publication. As a Bitcoin Cash loud speaker, many expected moderators behind the site to at least act with decorum and not issue threat to exchanges listed on the site. Going by the email exchange that is doing rounds on Reddit, it appeared Bitcoin.com got what they deserved after issuing daft threats to Bity, a Swiss regulated crypto currency exchange.
— ecurrencyhodler (@ecurrencyhodler) July 24, 2018
In the email, the site issued an ultimatum to the exchange saying they will de-list them from their publication should they not list BCH within the next 30 days. Bity on their part didn’t take the threat lightly and while their response was calculated, soft and backed by facts, the shed was too deep to ignore.
Apparently Bity thinks Bitcoin Cash has no user case and economy behind to back it and that no salaries are paid in Bitcoin Cash to warrant listing at the exchange. However, when that happens, they shall willingly avail the fourth largest cryptocurrency by market cap to their customers.
— NEWSBTC (@newsbtc) July 25, 2018
The controversy didn’t end there because this did coincide with CoinBase announcement that they didn’t unearth any case of insider trading from their voluntary internal investigation. Overly, that’s suppose to be a boost for this $8 billion exchange and as the first one to trend on the wild west of cryptocurrency, such news boost their integrity allowing investors to trade more confidently in future listings.
Bitcoin Cash (BCH) Technical Analysis
As before, Bitcoin Cash is technically a buy if we take a top down approach and realize that despite the last two months bear pressure, the trajectory is up. Not only do we see BCH finding support at $600, which doubles up as the main support line and 2018 lows, but prices are reversing right at the main support trend line connecting 2017, Q2 and Q3 2018 lows.
By all means, $600 is a very strong support zone and if indeed BCH sellers are in charge then they must close below it. Otherwise, any close above $850 as highlighted in our previous Bitcoin Cash technical analysis would usher in the next bull wave with first targets at 2018 highs.
In this time frame, our Bitcoin Cash trade plan is easy. First, BCH is moving inside a $250 trade range and it has been the case for the last one month. Secondly, we realize that sellers are technically in charge and for buyers to edge higher then we must see gains above $850. $850 as it appears is not only a strong resistance line but our buy trigger.
So, while keeping in mind these facts, we shall maintain a neutral approach until after we see our trade conditions being active. If Bitcoin buyers close above $850 today, then my recommendation for bulls is to buy on dips with targets at $1,300 with stops at July 24 lows at $750.
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.