Bitcoin Cash (BCH) Technical Analysis July 26th
Straight from CoinBase announcement that claims of Bitcoin Cash insider trading were baseless to Skrill wallet supporting cryptocurrency trading, Bitcoin Cash (BCH) related news are positive to say the least. Fact is, it is even more positive for CoinBase, a trusted and regulated US cryptocurrency exchange. Though we are neutral, out bullish skew and recent BCH gains continue to boost our BCH buy confidence as we expect BCH to close above $850 by the end of the week.
From the News
Interestingly, CoinBase, the US based cryptocurrency exchange valued at more than $8 billion, is now declaring itself free of “insider trading”. It was necessary for the exchange to clear its name from the damaging accusations and even as they deal with law suits from aggrieved investors, CoinBase went ahead and hired “two well-known US Law firms” to conduct internal probes and finally address accusations of employee/contractor insider trading.
According to the CEO, the internal investigation took months and after rigorous grilling and cross checking, no employee or contractor was found to have violated the exchange’s policy to warrant disciplinary action. Of course, CoinBase is doing the right thing but the fact that it is clearing itself raises eyebrows.
For a conclusive investigation, the community wanted to see involvement of an independent third party, representatives of complaining investors and regulators. Afterwards, the exchange-which is by the way regulated-would have come forward and issue their statement.
As this is happening, Skill the popular UK based fiat digital wallet provider, will from now henceforth allows their customers to buy Bitcoin Cash and a host of other high liquid cryptocurrencies.
Want to start #cryptocurrency trading but don’t know where to start? We've made the entire process easy.
— Skrill (@skrill) July 25, 2018
So far, the service would be available in 30 countries from where Skrill operates from. Account holders would be in a position to exchange fiat for BCH any time they want. The cool thing is that Skrill will keep all BCH purchases at recognized cryptocurrency exchanges.
Bitcoin Cash (BCH) Technical Analysis
Regardless of the recent inactivity and lower lows in lower time frames, we shall maintain a bullish overview on BCH. The reason behind this preview is simple: Bitcoin Cash has a positive correlation with BTC and since it lags, we expect BCH to cover ground to correct it.
Secondly, after last week strong gains happening at strong support lines, odds are we might see a follow through this week. As a result, BCH buyers might print and close above $850, our buy trigger line as stated in our Bitcoin Cash (BCH) technical analysis and in the process ushering in bulls keen on thrusting BCH above $1000.
In the meantime though, aggressive BCH traders can begin ramping up at current spot rates and place safe stops below last week’s lows at $640
Even though BCH is trading inside a $250 consolidation, bulls seem to be in charge and following July 24 strong gains retesting $850, chances are buyers might close above $850 today. As highlighted in our previous Bitcoin Cash (BCH) trade plans, such would trigger buy activities in line with our previous Bitcoin Cash trade plan and in that case safe stops would be at $800.
However, should sellers cancel bullish propositions and instead drive prices below $740, then we shall revert to neutral and wait for sellers to close below $650 as sell pressure resumes.
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.