Fundamentals and development of Bitcoin Cash is not a problem. The issue we all have is the failure of price,-value-to reflect the effort of the community. Not only do we have a robust network that can scale and settle transactions faster, there is wide adoption of the coin from different payment providers and merchants. As it is, Bitcoin Cash is down 14 percent for the week and two percent in the last 24 hours but these metrics would widen should there be a dip past $930 or May 24 lows. Today’s price action is therefore important in my view.
From the News
A cryptocurrency would be useless if there it has no real user case encouraging retail or corporate adoption. This is why behemoths like Bitcoin, Ethereum and Ripple for example are driving hard selling their products to the masses. Bitcoin Cash is doing the same and few days after forking, Revolut is listing BCH as a tradable asset or investment to their customers. In essence, the London based payment provider is making it possible for customers to integrate their fiat banking details and link it directly to their Revolut card.
This way, their users would enjoy instant fiat-crypto transfer via Bitstamp who charges 1.5 percent transaction fees via a simple dash board. Going forward, Bitcoin Cash would be an option for buyers and it’s not a speculation or ifs because whenever a coin is available to the masses, market capitalization and liquidity follow suits. We expect the same to happen to Bitcoin Cash in the days to come.
Thousands of miles away, there is good news for Bitcoin Cash supporters in Colombia. Bitek might turn out to be their gate-away. As a payment provider, merchants spread throughout Colombia can now receive payment in Bitcoin Cash and convert them to Pesos should they want to liquidate. This is not the first such service as it is similar to what BitPay is doing. Services like these protect merchants from price volatility as they can sell their BCH stash anytime and get their Pesos in an instant. To facilitate this, Bitek will use BCH-Pesos approximates from local cryptocurrency exchanges and Bittrex.
On daily user case front, Cheap Air now accepts payment in Bitcoin Cash and a host of other currencies including Litecoin and Dogecoin.
Bitcoin Cash (BCH) Price Technical Analysis
Before this week, many enthusiasts thought Bitcoin Cash hard fork would jolt prices to higher levels as buy pressure flow back to the market. Disappointingly, that was not and hasn’t been the case considering price action this week. What we are seeing is sellers pushing prices and printing new lows as days pass.
In the last seven days for example, Bitcoin Cash was the third worst performer in the top 10 after Cardano and IOTA. The question in everybody’s mind is this: will this trend change or Bitcoin Cash liquidation continues despite better features in their new network update?
In my view, the general crypto sentiment is still bearish and any bear candlestick today reversing attempts of higher highs in the last two days might initiate another wave of sell pressure driving prices back to $850. On the same vein, any extension of that long lower wick this weekend could create a spring board effect propelling Bitcoin Cash back to $1500.
After May 18 higher highs and fake bullish break out, prices broke below $1100 and now, we are trending at previous key support lines around $850. Our stops were obliterated and many more are likely to be hit if we maintain a bullish outlook in a yet to be confirmed bullish reversal.
The trend is down but market participants would be telling us a different story if we see higher highs building on May 24 bullish candlestick bouncing off from around main support at $850. Then again, on the back ground there is a divergence between prices and volumes. While the later increases, prices are going down. Regardless, we remain neutral at the moment and the only time I will recommend buys is when an up-thrust above $1300 happens. Otherwise, any drop below May 24 lows at $930 and BCH would likely test $850.