A double-digit loss was enough to shatter Bitcoin Cash bulls and now, prices are headed towards Sep lows. From previous Bitcoin Cash price analysis, declines below $500 triggered stops reverting our projection back to neutral as we anticipate breaks below $400. Contrary to expectations, these losses are printing in a bottoming market with solid fundamentals which should otherwise be supportive of price.
Latest Bitcoin Cash News
It’s true that cryptocurrency businesses do have a hard time to open up bank accounts but not anymore. LBX is launching a new service targeting crypto businesses in the UK. The service, LBX Pay will be a platform where these businesses can manage, store and transfer their crypto and fiat holdings without moving funds between different service providers or trading accounts. LBX first opened doors for OTC trading back in 2017 but has since registered with the UK’s FCA meaning their subscribers must submit KYC and related documents before accessing services.
For transparency, the company will hold all user fiat holdings in a segregated account complete with IBAN and issue out monthly statements. Though this development is welcomed, the partnering bank has not been made public but speculation points to Clearbank.
On the other hand, fiat holdings will be held in a secure cold storage. The overall plan is to roll out the service to the retail sector enabling them to interact with cryptocurrencies in a whole new way. This is so because aside from managing their trades, payments or balances, LBX Pay users with greater demands and volume requirement will have flexible access to the company’s OTC desk. However, they plan on launching a direct API service that connects directly to client’s account.
Bitcoin Cash (BCH) Price Analysis
BCH Weekly Chart
The market is still trying to pinpoint the exact cause of this severe slump. As it stands, BCH is down 14 percent thanks to events of early morning where in a flash the last three weeks gains evaporated as bears crashed stops trigger further sell off.
From the chart we notice that despite these deflating losses, BCH is still trading within week ending Sep 30 bar but prices are now aligned with week ending Sep 9 bear engulfing pattern rejecting gains above $600 in the process confirming week ending Aug 12 break below main support at $600.
Because of these developments—and the fact that BCH bears are $50 away from the main support and sell trigger line at $200, we recommend patience. This advised is from a risk-reward point of view. Besides, our stops at $480 marking Aug lows were crashed today.
BCH Daily Chart
Before today it’s clear that BCH was consolidating inside Sep 27 high low but with the consequent depreciation means our bullish projections is now null and void. Today’s losses are the hallmarks of a bear break out below Aug lows at around $480 which by design should trigger further losses.
But, we suggest taking a neutral stand until after bears dip below $400. Thereafter, traders can begin loading up on pull backs as we had recommended in previous Bitcoin Cash price analysis. Targets will be at $300 with stops at the highs of the break out bear bar.
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.