Bitcoin Cash Reaping “Fluidity Benefits”
Cryptos have a hype element and sentiment often sway price sometimes by large margins. At the moment, Bitcoin Cash proponents are upbeat for good reasons. Their transactions are up while CoinEx, a Bitcoin Cash based exchange, account holders can reinvest their free money elsewhere.
From the News
There is a miracle happening for users at CoinEx. You don’t come across this as often as you would like but with account holders getting free money from Air drops, there is excitement out there. Some are even connecting this crypto “helicopter money” of some sorts to the recent spike of Bitcoin Cash transactions. It’s up from previous 40k to 100k and even if it’s half of what BTC normal day transactions, we can’t just brush it off.
This is a significant improvement bearing in mind that Bitcoin Cash, though using the same tech and blockchain as the core, has gone that extra mile to implement new features and wallets staying ahead of competition.
Just so you remember, it even had to come up with replay protection mechanism which otherwise would have rendered Bitcoin Cash useless. What’s encouraging is the sweet realization that we might have some sort of Bitcoin Cash undervaluation relative to Bitcoin as statistics show. The former current spot price is around a tenth that of Bitcoin but as we have seen, it handles about half of what Bitcoin does in a normal day.
That’s screams value and a reason to reciprocate Bitcoin Cash efforts of educating the community straight from scratch. In the long term, we anticipate to see a scenario where “nature” will take its own course and replace rigidity with fluidity. Bitcoin Cash has been fluid thus far with the effect of rigidity has played out negatively at core’s LN.
Bitcoin Cash (BCH) Technical Analysis
Despite the strong waves of sell pressure, Bitcoin Cash is technically bullish. We would like to refer to this year’s events as the much needed correction. It continues to cool the overheating we saw in late 2017.
Now, here is the thing: $600 is a key support line and lies squarely at the base of that main support line. If sellers break below that level then odds are, Bitcoin Cash sellers would better aim for $300 as we have reiterated before. However, bearing in mind the way prices have been reacting at $600 and the resultant pin bar last week, buyers seems to be jumping in.
The only way that would be supported is if this week ends up bullish completing a three bar Morning Star reversal pattern.
Hinting at a bull revival is what the daily chart shows. Here our safe stops are at $650 and as it stands, convincing buy signals will only happen once we see bulls pushing above $850, our immediate resistance line.
This applies for those who are yet to trade but plans to. Wait in the sidelines until that condition is met because any move below $600 cancels this hawkish forecast.
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.