Bitcoin Cash Price Analysis: BCH Adds $240 Million in 24 Hours

Latest Bitcoin Cash News

As it is, Bitcoin Cash describes itself as a Bitcoin alternative and a coin which operates as envisioned by Satoshi Nakamoto: that of acting as a medium of exchange, supplementing and eventually replacing political money. And they are doing a pretty good job despite dropping market valuation, network difficulty and transactional volumes.

With the Wikimedia Foundation changing payment processors and preferring BitPay over CoinBase, donors from all over the world can make BCH contributions. Hopefully, this would help spur participation, draw demand which would eventually help lift the sixth most valuable coin from current lows. Already, there are hints of a recovery.

Aside from price action, their adoption drive is paying dividends. Roger Ver, the defender of the network in recent YouTube video said Bitcoin Cash has sealed a deal with ANA Group’s Alliance Cargo Direct. ANA Group describes itself as an inspiration of Japan providing “high-quality international distribution infrastructure utilizing our cargo aircraft”.

Unfortunately, he couldn’t divulge more because of Japan’s FSA stringent laws governing insider trading. All the same, Ver said they will make public their partnership adding that there were more publicly trading companies that would soon be looped in the network.

BCH/USD Price Analysis

Bitcoin Cash

Like XRP, BCH is on an uptrend and at the time of writing the fifth most valuable coin was up 3.5 percent. This is impressive and sets the ground for further gains that may see BCH prices rally towards $230 or higher as laid out in our previous BCH/USD trade plans.

Note that there is support even from a technical point of view. First, BCH is trending below 2017 lows meaning sellers were so vicious, they wiped out 2017 gains. Because of that, we expect a recovery, a bounce back, that will at least lift prices back to $250 or 2017 lows.

Bitcoin Cash Daily Chart

Trend and Candlestick Formation: Bullish, Breakout Pattern

Spurred by across the board shift of crypto sentiment, we expect BCH to be a benefactor. In that case, it is likely that the $70 floors set by Dec 2018 lows will be the launching pad for further higher highs in coming days. Note that BCH is trading within a short-term bull trend with caps at $250 or Dec 2018 highs. After more than 35 days of lower lows, we now have a double bar bull reversal pattern off the 78.6 percent mark.

This is bullish but there will be more reprieve for traders if there is momentum driving prices above $135—triggering risk-off traders angling to buy—and later $230—igniting risk averse traders with grand targets at $400—the main breakout level—previous support now resistance. $400 is pre-Bitcoin Cash hard fork supports and very significant in our analysis.

Volumes: Bullish

Momentum is building up. However, for bulls to be in control then we must see a high-volume break and close above $135. That means, if there would be a confirmation, then the bar must register high volumes exceeding those of Jan 28—62k and hopefully drive prices above $135 forcing aggressive traders to enter the trade. Only then will there be a bull’s confirmation.


Source
Author: Dalmas Ngetich
Image Credit

Bitcoin Price Flirts with Breakout But May Not Yet Have Bottomed

The bitcoin price on Sunday surged as high as 7.28 percent against the US dollar ahead of the US session.

The BTC/USD rate is trading at 4158-fiat at press time. The pair is almost completing the formation of an inverse head and shoulder pattern. Its neckline appears more like a near-term falling trendline, capping the strong upside movements lately. The latest jump in BTC/USD has affirmed what bulls are attempting to break at this point. Breaking above the neckline level sets up a run towards 4500-fiat. The resistance level is psychological at best, and its invalidation could also confirm an extended upside action towards 5000-fiat.

BTC/USD 4H CHART | SOURCE: COINBASE, TRADINGVIEW.COM

As of now, traders can wait for BTC/USD to close above the neckline in hopes to validate if the breakout is valid or false. This strategy can allow traders to go long towards their respective near- or long-term upside targets. Alternatively, traders can also place a limit order at or just below the neckline, so as to get an execution on a bitcoin price rebound.

Other than inverse H&S formation, the technical dynamics of the bitcoin market is mostly bullish in near-term. The BTC/USD pair is trading above the 50-period moving average. The RSI momentum indicator is close to 60, awaiting a jump to validate a stronger bullish bias. The MACD indicator is also inside a positive territory.

At the same time, people may start believing that the bitcoin price has bottomed out. While the market has certainly located a near-term support at 3430-fiat, a bottom cannot be confirmed unless we have a steady break and consolidation period above 4500-fiat.

BTC/USD Intraday Analysis

BTC/USD 1H CHART | SOURCE: COINBASE, TRADINGVIEW.COM

Coming to our intraday analysis, we are as usual placing our bets based on parameters defined by today’s price action. The BTC/USD index is comfortably trending upwards inside a rising parallel channel, giving us cues of potential entry and exit positions on each bounce and pullback action within the zone.

Our interim resistance is currently located at 4244-fiat while our interim support is at 4081-fiat. The latest bounce from the support line has allowed us to enter a long position towards 4244-fiat, according to our intrarange strategy. At the same time, we have placed a stop loss order at 4059-fiat to minimize our losses if the trend reverses.

Upon achieving the intrarange long target, we will put our focus on the channel resistance coinciding with 4351-fiat, our upside target. Thus, a break above the resistance level would have us open a long order towards 4351-fiat. We’ll maintain our risk management strategy by maintaining a stop loss order at 4222-fiat to exit the market on a small loss if a strong pullback appears.

Looking to the downside, a break below the channel support would have us enter a short position towards the 200-period simple moving average while eyeing 3951-fiat in the event of an extended breakdown session. A stop loss at 4124-fiat will define our risk management strategy in this position.


Source 
Author: Yashu Gola
Image Credit:  Charts from TradingView.