For some reason, fundamentals and technical chart formations are diverging. Here, Bitcoin Cash (BCH) sellers continue to wreck havoc even with announcement of key developments within the platform. That’s on top of adoption drives rivaling those of Bitcoin. All in all, BCH is down 24 percent in the last week and we expect sellers to drive prices to $300 now that there is a resumption of bears as our Bitcoin Cash trade plan dictates.
From the News
- Roger Ver now says you can buy Coffee from Starbucks using BCH via the iPayYou wallet. His tweet was definitely timely and seem to counter International Exchange announcement that they shall be working with Starbucks in coming days. The wallet first launched in 2016 and through it, users can buy Gift Cards either with BCH or BTC. Depending on their needs, they can later redeem them should they want to make purchases at different online retailers as Amazon or even pay for rides at Uber.
- Most social media and collaboration platform often restrict free speech and Amaury is experiencing this first hand. For some reasons, he was banned from Slack and being one of Bitcoin Cash lead developers, the community couldn’t take it lying. There were speculations that Slack barred as he was too loud and attacking “Pre-consensus”. Nevertheless, that doesn’t make sense for Slack to censor individuals simply because of opposing views.
- Innosilicon is introducing their new low energy ASICs that make use of Samsung’s FinFET chips. The ASIC miner is reportedly 30 percent more efficient than competitors mining equipment. Their first version, a 17.2 TH/s ASIC miner-the Terminator2, this latest edition the T2-Turbo miner consumes 75W/TH. Besides, it prints record breaking hash rates at 24TH/s in normal mode.
Bitcoin Cash (BCH) Technical Analysis
As mentioned in our previous Bitcoin Cash (BCH) technical analysis, our BCH trade plan is pretty straight forward. First, we realize that Bitcoin and BCH have a direct price relationship and both are struggling to stay afloat.
A dip in BTC causes a magnifying slide in other altcoins as BCH. Simple metrics back this: BTC is down 18 percent on a weekly basis but BCH on the other hand is down 24 percent. That’s roughly a 1:1.5 correlation and is massive by any standard.
Secondly, we note that at current prices, BCH is still trending below the $250 trade range the main support at $600.
With yesterday’s double digit losses, we expect further declines now that not only are there multi-level break below key supports—BCH prices are below the 12 month support trend line and one month support trend line—but bears are pressing higher keen on confirming May-June sell trend.
So far, Bitcoin Cash is down 20 percent in the last day. After that wide trade range breaking below main support at $600, we can begin unloading BCH in lower time frames. In that case, safe stops will be at Aug 8 highs at $670. First targets as mentioned in past Bitcoin Cash (BCH) trade plans remain constant at $300.
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.
Bitcoin image via Shutterstock.