Bitcoin Cash (BCH) Technical Analysis June 21, 2018
Week over week, Bitcoin Cash is up three percent gaining two percent in the last 24 hours. This is positive largely because of yesterday’s BitHumb hack that threatened to shift sentiment against cryptos as BCH. Overly, it’s likely that this week might push above $1,000 and end as a double bar reversal pattern founding a spring board for buyers aiming for $1,800.
From The News
Apparently, it seems like the Winklevoss Twins are striking milestones and with the award of the latest patent that would be the seventh in the last seven months. Of course, they are aggressive and as seasoned investors, they are obviously staking their wealth on this crypto gold mine.
The latest patent they received on June 19 was an Exchange Traded Product. From it we could see the details of the fund and the method of issuance of ETP shares. As you may be aware, ETP or even ETF are a unique form of tradable securities whose share prices depend on other investment products. Since these are crypto ETPs, issued shares would depend on the prices of cryptos included in the fund. They may be Bitcoin, Bitcoin Cash, Ethereum and a host of other cryptos determined by the company tasked with creating that ETP.
Regardless of the current market sentiment, it’s no doubt that any form of crypto investment from the big boys-ultra high wealth individuals and institutions would buoy the crypto markets. That’s what we have repeatedly reiterated but there is no way they can invest if authorities continue to blast cryptos as unsecure and volatile assets unworthy of investment.
Gemini is regulated and with the patent reward okaying this ETPs, it’s only a matter of time Winklevoss Twins ETP concepts are applied and these desired investors find a gateway of putting their money in cryptos like Bitcoin Cash. Bitcoin Cash main objective is to be a medium of exchange as Satoshi Nakamoto wanted Bitcoin to be and with protocol improvements, it’s likely that Roger Ver will be a coin to reckon in the future.
Bitcoin Cash (BCH) Technical Analysis
If we place a Fibonacci Retracement Tool between April’s high low then we realize that not only are BCH prices find support at our key support line, but they are also rejecting lower lows at an important Fibonacci retracement line. That’s at the 78.6 percent level which in other ways means current BCH prices are down 80 percent from April highs.
It’s definitely a deep correction but the good thing is that BCH buyers are getting in and three days before the week conclude and prices are trending within last week’s high lows. Like before, the past seven weeks candlesticks are short covering because the average volumes are low when compared to those of April. At that time, it averaged 250K. Now, here’s the thing. If this week close above $1000 or last week’s high then that would be a double bar reversal pattern straight at an important Fibonacci retracement level and might even form the basis of higher highs in the weeks to come.
Even though we are in some sort of stagnation going by the latest candlestick, our buy trade plan remains valid. Our mid-range buy triggers stand at $1000, a round number while sellers would be back in trend should we see depreciation below our initial first bear target and support at $850. At the moment, we wait and see what happens to price action and if our upside triggers would be hit or if bears would resume and perhaps push price to $650.
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.