Bitcoin Cash Price Analysis–Dec 13
Latest Bitcoin Cash News
The market activity of the last 11 months is clearly marked by bears. But behind this selloff, analysts including Chris Burniske—a partner at a New York Venture Firm, has strong reasons to believe that the market drawdown is driven mostly by technical factors and not by fundamentals. As we have a seen in recent days, almost all crypto assets have positive developments in the pipeline and from a fundamental point of view, prices should be printing higher and not lower.
— Chris Burniske (@cburniske) December 9, 2018
Anyhow, other non-price related metrics such as network activity is very bullish and further cemented by a BitMex research indicating that the general drop in prices was because of the uptick in miner selling activity. It was noted that on Nov 12, days before the Nov 15 hard fork, miners supporting opposing camps—SV and ABC, sold off their coins to finance and cover their losses as a result of the rather expensive “hashrate” war. As highlighted before, losses from this war were in the excess of $10 million as research data from BitMex shows.
Meanwhile, Gemini has had the greenlights from the New York DFS to list Bitcoin Cash. With this nod, customers should have access to trading and custody services now that the exchange did put in place replay protection measures to prevent double spending.
We are pleased to announce that Bitcoin Cash (BCH) is now available on Gemini! On Saturday, we will begin accepting Bitcoin Cash deposits, and trading will open across all currency pairs on Monday. For more information, please visit our blog on @Medium https://t.co/KchBr1wUc3
— Gemini (@Gemini) December 7, 2018
BCH/USD Price Analysis
The drop is one way and after shedding 29 percent in the last week, BCH is down to seventh and could drop lower in rankings if prices don’t print above $150—our immediate resistance, previous support. If anything, buyers have a tall order and before we recommend longs, the bear breakout pattern through which BCH/USD is trading in ought to be invalidated.
The only way for that to happen is if there is a surge and close above $150. If not and prices retest that level without breaking above it then the retest phase should be complete. Thereafter further losses below recent lows of $90 would be inevitable.
After a month of relentless drawdown, BCH/USD is now ranging within a $26 zone with limits at $116—Dec 7 highs and around $90. Our trade plan will depend on whether prices close below or above these limits in a bear breakout trade.
That is why before we suggest shorts or longs—and odds are bears will be in charge driving prices lower—clear, high volume wide trade range bars should print. Assuming there are breaks above Dec 7 highs at $116, the first targets will be $150 with stops at $100. On the reverse side, losses below $90 could ignite further losses.
Because of this, our BCH/USD trade plan is as follows:
Buy: $116—Dec 7 Highs
First Target: $150—Immediate Resistance
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.