Bitcoin Cash Technical Analysis: Finally, Some BCH Price Action!
The latest Bitcoin Cash technical analysis wades through the FUD, speculation and an all-out crypto-war to figure out what’s in store for BCH price with the looming hard-fork.
Bitcoin Cash Technical Analysis
Bitcoin Cash (BCH) 00 is nice and frothy on the expectation of the November 15th fork. Currently, BCH price shorts are outpacing longs and data from Bitfinex shows that BCH shorts are nearly double the number of open longs.
Bitfinex and Polo are supporting BCHABC and BCHSV markets and to be honest, anything could happen at this point on November 15th, so traders should be prepared and welcome the change of pace and action.
BCH has cooled off a little bit since leaping more than 50% to notch a two-month high above $646 and the current spike in short positions is not surprising given that opening such a position is typical when an asset has reached a top quickly with little supports in between the low and high.
To be honest, conducting a technical analysis on BCH right now is a little ‘speculative’ as swathes of traders are setting up positions to either gain from a massive price spike or dip, while many others are entering BCH for the free coins after the hard-fork.
Also to keep in mind, actual interest in Bitcoin Cash, according to Google Trends data, is still non-existent compared to Bitcoin 00.
As mentioned earlier, anything could happen so keep an eye on your charts!
The daily chart shows BCH pulling back sharply from the recent high and the presence of doji candles suggest some price uncertainty which is reflective of the near 50-50 split between the BCH-ABC and BCH-SV community as miners, investors and whomever else might be involved chooses a side.
The 20-MA appears to be functioning as a solid support (aligns at 61.8% Fib Retracement ($500)) and currently BCH rides along the 100-MA. The RSI has started to curve upward into bullish territory as the 50-MA kisses the 20-MA and the MACD is crossed and slightly descends from bullish territory.
If BCH falls below $500 it could quickly drop down to $460 (below the 50-Ma) and if this support gives way a full retrace is on the cards.
Traders should keep a close eye on charts across multiple exchanges and remember that post fork sell-off of BCH ABC and BCH SV could occur so try and remain impartial.
What do you think of the latest Bitcoin Cash technical analysis? Share your thoughts below!
Images courtesy of Shutterstock, Trading View. Market data sourced from Bitfinex.