Bitcoin Cash Retreats From Its High Ahead of Hard Fork

The 4th largest cryptocurrency is set for a hard fork in just a few days, on Nov. 15th
Bitcoin Cash Retreats From Its High Ahead of Hard Fork

Bitcoin Cash (BCH) is set for a hard fork in just a few days, on Nov. 15th. This news sent the 4th largest cryptocurrency to a high of $638 against the US Dollar, but it soon dropped below $600 and is now trading at $581.

In other news, Chinese mining behemoth Bitmain announced plans to deploy 90,000 Antminer S9 units to mine Bitcoin Cash, and this will probably have a strong impact on its price. That many units can mine a lot of coins, and that will affect the supply/demand picture.

Charts at a Glance

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The BTC/USD pair failed to reach the resistance at $655 and collapsed below the previous resistance at $590, posting a negative 1.96% move for the last 24 hours. It is still up about 33% for the last 7 days, but it is clearly slowing down.

The Relative Strength Index was in overbought territory (above 70 level), and this was an early indication that a retracement was coming. The daily chart shows there is still room for BCH/USD to go lower (possibly until the RSI reaches its 50 level), but overall the short to medium term bias remains bullish with $655 as target.

Support zone: $500 and the 50 level of the RSI

Resistance zone: $655

Most likely scenario: push into $655 without excluding further downside before that target is reached

Alternative scenario: choppy, sideways movement


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Central Banks — One Step Closer to Creating Crypto?

IMF Chief said in a speech that central bank digital currencies (CBDC) could be a good solution to some of the problems faced by the banking sector
Central Banks — One Step Closer to Creating Crypto?

IMF Chief Christine Lagarde said in a speech that central bank digital currencies (CBDC) could be a good solution to some of the problems faced by the banking sector. This is good news and was followed up by three central banks with propositions to use CBDC for cross-border payments.

Central banks in Canada, Singapore, and the UK issued a report, noting that various CBDC models could be used to overcome various problems such as going through multiple intermediaries and other time-consuming hurdles. If this comes to fruition, it remains to be seen how it will affect the current crypto market.

Charts at a Glance – BTC/USD

Charts at a Glance – BTC/USD

After dropping to a low of 5188 against the US Dollar, Bitcoin showed rejection at around 5200 by printing two 4-hour candles with massive wicks in their lower part. This is a sign that the sell-off may come to an end or at least that 5200 is strong support for now.

The Relative Strength Index is deep in oversold territory (below its 30 level), which is a fact that, combined with the support at 5200, could push the pair higher. Currently, one BTC is worth 5,540 US Dollars; the next level of interest is located at 5800, so it’s not such a big distance to travel and could be reached over the weekend.

Support zone: 5200 as technical support and 5000 as a psychological level

Resistance zone: 5777 - 5800

Most likely scenario: bounce higher, with 5800 as the target

Alternative scenario: new attempt to break support (5200)


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