Bitcoin Cash (BCH) Technical Analysis June 28
Even in the midst of Lightning Network negative review, Bitcoin Cash supporters should not be too quick to judge. Bitcoin Cash are also grappling with their own criticisms and BitPico is a planning to stress test the network by launching a 51 percent attack in days to come. In fact they have their machinery ready. Anyhow, whether BCH/BTC is good or bad, figure heads at both networks should find room for concession. This may after all support prices.
From The News
And so the debate rages. The supremacy war couldn’t be better and with spilling popcorns, critics regardless of their experience are airing their views. First, we have the Bitcoin Lightning Network which by design was meant to counter the growing influence of Bitcoin Cash promise of low transactional fees, a scalable network and above all completely decentralized.
Despite all this, the underlying question is: which coins will be dominant in the future? In my opinion, this question is grounded on the wrong ideology. That of Nick Szabo views that the “winner takes it all” approach. It’s literally blocking room for a possible cease fire and blockchain inter-operability.
Without a doubt, the Bitcoin Network is the most secure with unsurpassed hash power but the custodian of the network are rigid and still sticking with their 1 MB block size.
With Segwit implementation, Bitcoin scalability is even hard because of the block extension and the overhead caused by bandwidth overheads. This means that despite it reducing costs, for every 1.8 MB useful block size, 4MB of data goes down the drain.
Lightning Network Woes
It is increasingly clear that Bitcoin Cash and Bitcoin have different objective and would lose if this unnecessary conundrum continues. The super-hyped Lightning Network is still at its early stages of development but already different findings shows that it is highly unreliable. All things constant, LN is meant for micro-transactions because as it is-and at the moment, nodes can only transact 4 cents with 100 percent surety that it would go through.
A step higher and at $490, chances of moving funds plummets to one percent. Then that’s not all, there is an element of centralization with liquid nodes controlling more than 53 percent of the network. All that is needed to solve this quagmire is the realization that Bitcoin will not after all scale and Bitcoin Cash would be a network to be for those who believe the original legacy network was a medium of exchange.
Bitcoin Cash (BCH) Technical Analysis
As we have reiterated before, the simple fact that alt coins as Bitcoin Cash are declining is the fact that BTC is on a downward spiral. As it stands, BCH is down 20 percent in the last week or so and what that means is that sellers are just $100 from testing the main support line at $600.
That support line is an important level and it is where our analysis would anchor at. Technically, I would recommend putting off shorts until after we see what happens at $600 incase sellers step up their pressure. In the meantime, those who did sell earlier can lock in their profits.
At this time frame, our weekly chart trade plan is clearer. Notice that while we remain bearish, the fact that bears are oscillating around this year’s lows at $600 is worth noting. That’s the precise reason why we should not be rush and take shorts without the risk reward ration out of this trade. If in case you do sell at current prices then suitable stops would be at June 26 highs at $800 while targets will be at $600.
Of course, if there is slide below $600, the better but since we need affirmations, it’s better to wait and see what happens at this key support line. Remember, this trade plan would be cancelled once buyers push prices above $850. On the reverse side, any strong break below $600 means our next target is $300 or Bitcoin Cash’s all-time lows.
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.