All in all, Bitcoin is down and as expected Bitcoin Cash and other altcoins are following suit. If anything, we should be looking at how BTC reacts at key support line–$6,000 before suggesting possible trend directions at BCH. In the meantime though, we suggest selling BCH on every high now that our sell break out pattern has been validated and the bear trend resumption stage according to June 12 bears is now active following yesterday’s dip below $600.
From The News
- Bitmain, a monopoly manufacturers of Bitcoin and Bitcoin Cash ASIC miners are planning on opening a data center and a mining facility at Rockdale, Texas. Of course, the topic of cryptocurrencies remains contentious with varying opinions especially in the US and China where Bitmain headquarters are based. Regardless, work on the $500 million facility begins in Q1 2019.
- Boerse Stuttgart has been on the news for the better part of the year and being the second largest stock exchange in Germany after Boerse Frankfurt, their involvement in cryptocurrency is definitely good news. Not only are they making inroads by laying necessary infrastructure, but they are creating this regulated trading avenue that eliminates wallets for Bitcoin Cash, LTC or even BTC. Besides, trading via their sentiment analyzing crypto app, Bison is free of charge.
- The supremacy wars shifts to Lightning Network (LN) proposed by the core team and zero-conf which the cash team advocates. Some claim it’s faster that LN and way cheaper but according to BCH supporters, the fact that the core team “crippled” it when they introduced 6-config shows their “malice” and impunity. However, the BTC team refutes this saying zero-conf open doors for double spending and at the end of the day the merchant would be swindled.
Our Bitcoin Cash trading plan has been clear and recent price action confirms this position. First, with the 20 percent drop, the direct price correlation between Bitcoin and BCH has been put on the table.
Remember, Bitcoin is also down 13 percent or there about and hauling other altcoins with it. Secondly, BCH is now trading below several multi-level support line as indicated in last Bitcoin Cash (BCH) trade plans.
Note that at current spot prices, there is a whole bear candlestick trading below the 12 month support trend line as sellers retest the main support line at $600.
At this rate of depreciation, BCH prices are now below the $250 consolidation zone capping prices between $600 and $850 today and as such, we recommend short with first targets at $300 as mentioned before.
In our last BCH trade plan, we had suggested selling once Aug 4 bear candlestick broke below the one month intra range support trend line.
As such, aggressive traders can now lock in some profits. In the meantime, conservatives can begin unloading with stops at yesterday’s highs at $670 now that prices are trending below $600 validating our bear break out pattern which was set in motion after that break below $850 on June 12.
First targets will be at $300.
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.