Bitcoin Cash Price Analysis: Bulls Aiming For $600, $870 as Prices Bounce Back

Bitcoin Cash Price Analysis–Oct 4

Today, BCH is likely to bounce towards $600, a key resistance and buy trigger line reversing this week’s losses. Supporting this view are candlestick formations and deluge of Bitcoin Cash news depicting how mass adoption is picking up.

Latest Bitcoin Cash News

The $8 billion US crypto exchange has a methodical approach but undeniably, plays a huge role in building bridges. CoinBase says they are a bridge connecting fragmented fiat systems to the future of universal money, cryptocurrency. And the best way of strengthening this connection is to allow merchants to easily create crypto accounts. With CoinBase commerce, the future is indeed here.

The concentrated nature of CoinBase coin listing makes it an on-demand platform but since Bitcoin Cash is supported, businesses anywhere in the world can easily accept crypto. Registration at CoinBase Commerce is easy and eliminate the probing common with traditional payment providers. With a valid email, a merchant can begin. Thereafter they can set-up a two-factor authentication system before recording a seed phrase giving them control of their account. Later, the owner can toggle with coins he/she accepts. If need be, they can whitelist their business site at CoinBase Commerce and create a payment button on site.

As an influential player in the space, CoinBase providing avenues for crypto mass adoption as a facilitator. After all, business and groups all over the world accept cryptocurrencies. From HackerOne—a bounty hunting group that has worked with several Fortune 500 companies to a sharp increase in cryptocurrency ATMs across Europe, adoption is picking up.

Bitcoin Cash Price Analysis

Weekly Chart

Two things can be gleaned from the weekly chart: First, Bitcoin Cash prices are down 95 percent from 2017 peaks. Losses are evident when we paste a Fibonacci retracement tool drawn at 2017 high low. Secondly, week ending Sep 29 is influential simply because of supply-demand dynamics. Notice that there were volume spikes and despite losses early this week, prices are steady adding roughly one percent in the last week.

Before Tuesday, BCH topped the performance chart in the top 10. From this, we can again conclude two things: One, the correction has been extensive and secondly, technical chart formation hints of a slowing bear momentum. The second conclusion is backed by Fibonacci retracement rules following the deep 95 percent retracement and two, the spike in market participation is supportive of price.

Because of the double bar bull reversal pattern and bull volumes, we have a bullish outlook and buyers can buy on dips in lower time frames. On the other hand, risk-on type of traders can wait for clean breaks and close above $600, a key resistance former support level.

Daily Chart

In this time frame, BCH is stuck in a ranging market with caps at $600 on the upside and $400 providing strong support.

While we can base our analysis from a bear break out of early August, that stand can only be valid if there are dips below Sep 27 lows at around $410. That will confirm retest of Sep 3 and subsequent losses. However, from a top-down approach, Sep 27 increase in market participation and 2018 losses mean there is a likelihood of a reprieve as we enter Q4 2018.

As such, we recommend aggressive types to load at spot prices with stops at $450 or Aug 2018 lows with first targets at $600 and later $870. Should these stops be hit, then we shall revert back to neutral expecting losses towards $400. This shall in turn trigger sellers aiming at $300.

Disclaimer: This is not investment advice and views represent that of the author. Do your own research before making an investment decision.