Those who held Bitcoin Cash (BCH) during its meltdown in the latter half of 2019, there may still be time to generate enormous gains.
Famous crypto analyst DonAlt on Friday discussed the bullish prospects of the fifth-largest blockchain project by market capitalization. The trader said he expects the BCH-to-dollar exchange rate to hit $380 in 2020, revealing that he would open a long position towards the said upside target.
This is starting to look very promising.
I'm bullish, long and expecting quite a bit higher. pic.twitter.com/qpplId7O0s
— DonAlt (@CryptoDonAlt) January 3, 2020
The statements followed BCH’s impressive gains in the spot market during the Friday session. The cryptocurrency soared by up to 11.11 percent, or $21.66, as the US killed a top Iranian military official, Qassem Soleimani, in an airstrike. The event sent investors looking for haven assets, which pushed the prices of gold and oil higher.
The upside sentiment further crept into the crypto market. Eight hours after the US attack, top cryptocurrency bitcoin registered 6 percent gains. So it appears, other altcoins merely tailed bitcoin, with its forked cousin Bitcoin Cash bringing maximum profits home.
Bullish Technical Pattern
DonAlt stressed that Bitcoin Cash could attract a considerable capital from the neighboring Bitcoin market. He noted that the BCH-to-BTC exchange rate is forming an inverse head and shoulder pattern on the daily charts. Traditionally, it is a sign of a bearish reversal.
The trade should play out like this: A break above the red neckline signals a sharp move higher if further confirmed by a spike in volume. The ideal bullish target for a jump is equal to the distance between the inverse H&S bottom and neckline. So it appears, that distance is close to 3,947 satoshis, or 0.003947 BTC.
Considering the red neckline is coinciding with 0.029 BTC, the ideal upside target for long positions is circa (0.029+0.003947) BTC (or 0.032 BTC).
“The BCH/BTC chart is an absolute beauty,” said DonAlt.
Part of Bitcoin Cash’s gains could come on the backs of a more extensive altcoin rally.
Market analyst Beastlyorion in November predicted that bitcoin’s dominance, which measures the share of the cryptocurrency’s market capitalization relative to that of the broader market, could break below 66 percent. He added that such a move would have traders exchange their bitcoin holdings for altcoins.
Meanwhile, other analysts think that bitcoin, in the long-term, will eat the market cap of altcoins. The sentiment follows speculation about bitcoin’s adoption among institutional investors. The involvement of Wall Street firms like Fidelity and Bakkt in the cryptocurrency has already upped the scenario.
Featured Image from Shutterstock