Bitcoin Cash Price Analysis–Dec 6
Latest Bitcoin Cash News
Maybe this sell-off is the best thing that ever happened to the crypto market including Bitcoin Cash. Sure enough, it has been draining not just for investors but at the rate of restructuring it means investors/developers/megaliths who are in this space for the tech, remain unshaken.
Besides the Bitcoin Cash ABC—SV hash war that did trigger this plummet, both parties splashed cash to secure their turf and while BitMex did their research indicating that ABC and SV burned approximately $10 million before the truce, unsubstantiated news indicate that Q3 was wrenching for Bitmain—the monopolist chipset manufacturer accused of using customers’ gear before shipping.
We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup
— BTCKING555 (@btcking555) December 4, 2018
According to a leak, Bitmain has to absorb a $730 million loss in Q3 thanks to the sliding crypto market wiping gains in Bitcoin Cash—of which they own a majority, stalls in inventory—miners and the crypto-curious don’t want to take risks and so they aren’t investing as prices drop and of course the toll from mid-November hash war of which they were forced to rent hash.
With massive losses, Bitmain has no resources to support BCH. Illiquid BCH falls further hitting Bitmain balance sheet. Suppliers cut off credit lines & buyers wary to purchase equipment. IPO Canceled. Only solution – significant down round and VCs take over? Interesting to see!
— BTCKING555 (@btcking555) December 5, 2018
If anything, this drain is the largest in the company’s record and will surely have an impact on its IPO prospects hinting on the general health of the market. Even with this, others are optimistic saying this drain is exactly why Bitmain might “pump” the market to make up for Q3 anticipated “losses”.
BCH/USD Price Analysis
On a week over week basis, BCH/USD is down 34 percent to $125 and with the slide, the bear breakout of mid-November is valid. If anything, it is going to be a tall order of BCH bulls to muster enough momentum and even break above $280 which is the week ending Nov 25 highs.
For us to fade the market, then we must trade as laid out in previous BCH/USD trade plan: ramp up BCH once there are strong gains above $280. That’s when a double bull reversal pattern has printed at the back of high volumes.
This looks unlikely to print anytime soon more so with news of Bitmain losses—they are the main supporters of BCH ABC. From the charts, our previous BCH/USD trade conditions have been met and since prices are trading below $150, we recommend traders to unload their BCH on every pullback retesting $150. It’s likely that BCH shall print new 2018 lows at $100.
Thing is, BCH/USD is bearish and countering the trend by buying at spot prices when there are supporting formation is a sure way to register unnecessary losses. This is despite yesterday closing as a long lower wick indicating increasing demand in lower time frames.
Unless otherwise there are moves above $150—our main resistance line and sell trigger line, closing above Nov 24 highs at $220 as bulls confirm Nov 25 gains, we shall retain a bearish outlook with targets as aforementioned.
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.