Bitcoin Cash Technical Analysis: BCH Price Steadies As It Approaches Key Support

Other than Litecoin and EOS, Bitcoin Cash (BCH) might end up edging higher today. Already, price is stable losing two percent in the last day and reacting at the one month support trend line with a long lower wick. The log lower wick points to build up of bull momentum in lower time frame and this could propel prices above $850 today.

News Highlights

  • It is exactly one year since Bitcoin Cash came to existence and from a neutral’s perspective; Bitcoin Cash development has been nothing short but impressive. To understand the reasoning behind their accelerated development one must understand the root cause of all this: The failure of Bitcoin core team to implement Segwit 2x and hard fork. Since forking, we have Bitcoin Cash development community creating their own infrastructure and forking twice-and we expect more in due course. That’s not all; BCH is also the fourth largest coin by market cap.

  • Did Roger Ver, the Bitcoin Cash Evangelist take a subtle swipe at Ripple for their ability to freeze wallet addresses when called upon? Well, he might have. While his public apology took the crypto verse by storm, his comments about being “misled” revealed the intricacies of the crypto world. The market is understandably young and while major economies formulate fitting rules, it largely remains unregulated. The unchecked nature means several elements can abuse blockchain’s unique properties. Conversely though, Bitcoin Cash’s blockchain is a thriving environment for certain groups.

  • Wormhole is a smart contract and tokenization protocol that originated from Bitmain. It leverage on the recent upgrades done when the network forked to 32 MB block size and is backed by burned Bitcoin Cash. Wormhole Coins (WHC) are now tradable at CoinEx and uses their own consensus, Proof of Burn. Every time a BCH is burnt, 1000 WHC coins are released according to the Wormhole’s whitepaper.

Bitcoin Cash (BCH) Technical Analysis

Weekly Chart

Bitcoin Cash (BCH) Technical Analysis
Click here to see the full Bitcoin Cash Weekly Chart by Trading View

Our Bitcoin Cash (BCH) trade plan is straight forward. And we can see how this plays out from previous BCH technical analysis where we noted that prices are generally in a bear trend and syncing with May and June sellers.

While at it, there are two main support lines for our consideration. The first being that 12 month support trend line from where BCH found support and briefly accelerated. The second being $600 which represents the lower limit of our $250 trade range.  $600 is our official sell trigger and should prices edge below it, then we recommend selling with ideal targets at $350.

As visible from the weekly chart, BCH price action is trending around these key support line and for sellers to resume, then they need to edge below $600 as laid out before. If not, then we need to see a bounce above $850, triggering our longs with first targets at $1300.

Daily Chart

Bitcoin Cash (BCH) Technical Analysis
Click here to see the full Bitcoin Cash Daily Chart by Trading View

Despite ending bearish, yesterday we saw bears slowing down and reacting at the one month support trend line as the daily chart shows.

Overly, we remain bearish thanks to July 12 bear candlestick and most importantly for buyers’ failure to close above $850, triggering our longs in the process.

That meant our bear break out pattern is valid and for trend continuation we should wait for convincing follow through closing below $600 as laid out in our past Bitcoin Cash (BCH) technical analysis.

Anyway, on the reverse side, BCH buys need to build up momentum and reverse losses if at all this bear trend is to be cancelled. Targets remain the same as aforementioned.

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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