Bitcoin Cash Price Analysis–Jan 10
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What if governments seize this opportunity and adopt crypto ahead of dilly-dallying institutions? Won’t it be perfect and a direct endorsement to a digital asset that not only promise to shape and even disrupt traditional setups but can also double up as a reliable medium of exchange and a store of value.
Bitcoin core rise to prominence came at the back of outright disillusion and distrust of greedy financial institutions after the world economy tumbled in 2008-09. Investors blamed banks for being opaque and exacerbating an already deteriorating state by dumping CDOs at their expense. Bitcoin roll-out was timely. It is now slightly over ten years after Genesis, and the growth has been precipitous.
According to Nick Szabo, one of the pioneer cryptographers and thinkers, cryptocurrencies may, after all, be the cog needed for central bankers to shore up their reserves. Surprisingly, his comments were made days after a Russian professor said the Kremlin was contemplating liquidating $450 million of reserves for Bitcoin as a precautionary measure just in case the US and allies announce another round of sanctions.
At the face of mounting uncertainty and endless politics, Nick Szabo—while speaking at the Israel Bitcoin Summit in Tel Aviv–said cryptocurrencies is a perfect fit, an alternative reserve denomination especially when a time comes when a government cannot trust a foreign bank with their notes or bonds.
Bitcoin Cash Price Analysis
The trend has been set and despite market-wide excitement, sellers are technically in control. It may be deflating but from a conservative and a soberer perspective, sellers have an upper hand. In reality, BCH/USD is stuck in a bear breakout pattern with clear resistance at the breakout level of $400.
From this overview, we shall consider price action of the past two days a correction, a mandatory pull back allowing sellers to stock up in readiness of the next wave of lower lows. This position will only change once there are solid gains above Dec 21 highs or $280.
Coincidentally, this level is the 38.2 percent Fibonacci retracement level based on Nov—Dec 218 high low. Now, clarity and an indication of shifting momentum, break above $230—our immediate resistance—and $280, our conservative bull target should be at the back of high volumes, exceeding recent averages of 32k.
Otherwise, if prices drop below $150 and $130 for whatever reason, we shall revert from bullish to bearish and Dec 17 gains would likely be reversed.
If prices edge past $230 or find momentum from $150 support, this will be our BCH/USD short term trade plan:
Target: $280, $400
All Charts Courtesy of Trading View–BitFinex
Disclaimer: Opinions are those of the author. Do your Research.