Bitcoin Cash Price Analysis–Nov 8
After 10 months of relentless sellers, BCH/USD is finally bottoming out as buyers aim for $850. This is all thanks to CoinBase and Binance commitment that they will support the resultant chain (s) depending on the outcome of the network’s half-year software upgrade scheduled for Nov 15.
Latest Bitcoin Cash News
No doubt the poster coin of this week’s crypto rally is Bitcoin Cash. After printing double-digit gains in the last three days adding a massive 45 percent, it did haul other coins as a result. This reinvigoration of the crypto market is what traders desperately wanted and the result has been immediate. Not only does it appear that the market is finally bottoming out but some interesting developments around Bitcoin Cash contentious hard fork could further propel prices towards $1000.
After receiving an endorsement from CoinBase—who remain categorical saying that they shall offer support for the official chain that Bitcoincash.org publishes and Binance-who, as usual, will support both coins but suspend trading of both pairs until stability and security are guaranteed, BCH/USD pair did expand breaking above $600.
But, it’s not about the endorsement but more about the tight control of the network hash rate between Bitcoin SV backed by CoinGeek and Bitmain’s ABC. The former is still dominant controlling 18 percent of the total hash rate in the last week with an additional hash split to Bitcoin SV who now has close to 10 percent of the network. Like all hard forks or software upgrades, the backing from miners is important and that is why it is important for traders to move their BCH from exchanges to cold storage until after calm return.
BCH/USD Price Analysis
Two things are clear: firstly, BCH/USD is bottoming and is at the early stage of a potential rally springing out from the $400 mark after 10 months of lower lows from where BCH/USD has shed 95 percent of 2017 super gains. Secondly, we now have a three-bar bull reversal pattern or the morning star pattern after high volumes of last week. Like all morning star patterns, how this week close is important. Should it print as bullish and above $600 then we suggest buying at spot with first targets at the next resistance target at $850 and later $1,200.
From a top-down approach, all our previous BCH/USD trade conditions have been met after this week’s drive and close above $600. Since this is a bullish breakout pattern in a large morning star pattern following an inevitable correction after a 95 percent dip, traders can buy at spot with stops at $550 or Nov 6 lows at $550. First targets as aforementioned are $850 while drops below the resistance level cancel this projection.
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.