Bitcoin Cash Price Analysis Novemeber 8th: BCH/USD Bearish Below $600

After 10 months of marauding bears, traders expect prices to recover and perhaps retest $1,000 by the end of the year. But the main problem and a major obstacle is the uncertainty around Nov 15 software upgrade. If there is consensus before the D-day then it will be a huge boost for BCH/USD as prices could expand and even clear $850.

Latest Bitcoin Cash News

Thing is, Bitcoin Cash is at the edge, and a week before the contentious hard fork, the coin is rallying adding 40 percent in the last week. It’s odd that prices are on a higher considering the magnitude of what’s at stake.

Because of the lack of consensus, the blockchain could end up splitting and on one side Bitcoin Cash SV whose proponents is routing for Bitcoin Cash to snap back to the original Satoshi protocol could have their supporters as CoinGeek and the rest. Meanwhile, Bitcoin Cash ABC with full support from Trezor and Bitmain shall have their own support base.

Though this will be beneficial for BCH owners flowing in due to expected wind fall, it could also mean the reduction of the coin’s market cap and a probable collapse depending on where lean. Nevertheless, we expect a bloodbath because Bitcoin ABC supporters can liquidate their one million coins while Bitcoin SV can take a measured approach and withdraw their hash power should it not be dominant opening leaving the network open for 51 percent attack.

This probability is part of the reason why investors should withdraw their coins from exchanges and store then in hardware wallets as Ledger who by the way have expressed their intentions of supporting any of the dominant chain. Alternatively, traders can open accounts at Poloniex who have a pre-fork trading going on allowing trading of BCHSV and BCHABC against their stable coin USDC or BTC.

Bitcoin Cash (BCH) Price Analysis

BCH/USD Weekly Chart

BCH/USD Price Analysis

Unless there are solid moves above $600, BCH is technically be bearish as it has been in the last couple of months. It’s easy to see why. First not only are prices trading inside Week ending Sep 9 and 16 high low but the failure of buys to build momentum and convincingly close above $600 is a cause of worry.

Like in all our previous BCH/USD trading plans, all we need are high volume thrusts and close above $600 triggering the first wave of bulls targeting $850. Aside from confirming bulls, the break out will also complete a three-bar bull reversal pattern, the morning star.

BCH/USD Daily Chart

BCH/USD Price Analysis

Despite upbeat preview, BCH/USD is actually ranging with clear resistance at $600 and support at $400. Therefore, before initiating trades, we must first see strong moves above or below these trade limits.

In our case, we recommend taking a neutral stand until after a whole bull bar confirms Nov 4 high volume candlestick printing a whole bar above $600. That will be a bullish breakout pattern.  Thereafter, we shall recommend buying at spot with stops at the breakout bar’s lows with first targets at $850.

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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