Bitcoin Cash Price Analysis: BCH Shed 3.7%, Bulls Slow Down

Latest Bitcoin Cash News

Roger Ver is a Libertarian and he is not shy talking about his ideal world. In his recent tweet, he said every law is ultimately a death threat. In yet another tweet he poured out his frustration on taxation saying taxes enrich the most destructive organizations on earth at the expense of the most productive ones. In spite of his rather radicalizing views, the long arm of the law is omnipresent. It may be dark but an unfavorable statement from the US SEC or DoJ summon of any member or affiliates of the Bitcoin Cash network may see prices crash.

Read: Bitcoin Jesus Roger Ver Compares Coinism with Nationalism within Crypto Community

Undoubtedly, regulators and law play a role and isolationism while the ideal isn’t a solution. At the moment, the dominant debate is whether central banks would jump ship, endorse crypto and roll out their CBDCs. For crypto puritans, their cipher punk prophecy would come true but according to a recent survey from the Bank of International Settlement (BIS), a handful of central banks are toying with the idea and “proceeding cautiously” with proof of concepts.

Also Read: New Texas Department Of Banking Policies May Require Stablecoins Creators To Gain Licensing Approval

At the same time, we shall gobble this rather exciting news with doubt because the BIS is owned by central banks to “foster international monetary and financial cooperation and serves as a bank for central banks.” There is no reason why a survey by a competitor would endorse a solution that seeks to make central banks obsolete in the medium or long term.

Bitcoin Cash (BCH/USD) Price Analysis

At spot rates, BCH is down 3.7 percent in the last week and down one spot to fifth after EOS’s market cap eclipsed that of BCH. It’s a flip and as prices cool down after outperforming other assets in the last two weeks or so, this retracement is welcomed by traders searching for loading opportunities.

Anyhow, from the chart, we retain a bullish outlook in the near term but a bear preview when taking peaks from a top-down approach—mainly from the weekly or monthly time frames. As it is, caps are at $230 and even if gains are solid with BCH prices expanding, registering double-digit gains as bulls complement gains of mid-Dec 2018, we need to see volumes.

Driving prices above $230 triggering buys should be backed by above average volumes above recent averages of 15k. Besides, the bull bar should be wide-ranging, crashing above the resistance trend line of the bull flag as BCH price rally towards $280 and ideally $400.

Before then, aggressive traders can buy at spot prices with stops at $140—just below Dec 28 lows—and our immediate support level. Otherwise, note that drops below $150 and $140 could spur selling frenzy and in that case drops to $100 would be fast and crashing.

All in all, our BCH/USD trading plan is subject to gains above recent highs of $230. Up-thrusts above $230 would usher in the next wave of bulls and this is how we shall trade:

  • Buy: $230
  • Stop: $180
  • Target: $280, $400

All Charts Courtesy of Trading View

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.

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