The tide is rising and Bitcoin Cash is riding with it. In the last 24 hours, Bitcoin Cash is up nine percent meaning technical formation hints of support at $850, a previous support and bear targets from our past BCH price forecast. That aside, odds of a BCH buying follow through and confirmation of a three bar bullish reversal pattern remains high today.
Let’s have a look at Bitcoin Cash (BCH) price action:
From the News
It came as a news flash, that announcement by CoinBase that they will support ETC in the coming months. The news triggered a capital rush into a cryptocurrency that was there from the very beginning and still soldiering on as they build their legacy Ethereum coin burn blockchain adhering to the spirit of decentralization. ETC is now in the top 20 with a $1.45 billion market cap and with the new found attention, it might soon find itself shoulder to shoulder with Buterin’s Ethereum and Bitcoin Cash.
For sure, this is perfect and according to Zeeshan Feroz, the CEO of CoinBase UK the “small company did a better job of controlling information flow in this developing space. He even said prior to this, the announcement was smoother than how it was when BCH support was announced. If that was the case with zero insider trading, then undoubtedly, that would be perfect for the market. After all, as they plan to play under the SEC and FINRA rules and regulation, they must stay stain free before they receive that approval stamp.
If approved, Coinbase will be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
— Coinbase (@coinbase) June 6, 2018
Talking of regulation, all eyes will be set on China-again. This time, the market is upbeat and a little bit hopeful that the country’s financial regulators will re-look cryptocurrencies and perhaps warm up to their respective ideas. While this is definitely a tall order, China have to take a stand for it to emerge as a technology trend setter more like what the US is doing. Of course, many agree that blockchain is here to stay and in fact they support it, the unregulated nature of cryptos is a thorny and deterrence for many would be investors.
From our previous Bitcoin Cash forecast, our main support and the lower side of our trading range is at $600. But in light of our trading behavior in the weekly chart, we placed an intermittent support at $850 and what we are currently seeing in the weekly chart is strong reactions at this level.
Technically, we expect to see sellers continuing with their march but that is subject to what happens next week and the eventual shape of this week’s candlestick. Should it end as a bullish pin bar then it would mean buyers are entering in lower time frame signaling trade pause-at least from a conservative approach-until after there is a follow through pushing prices above week ending June 3 highs of $1,300.
Otherwise, any strong break below $850 means we sell and aim for $600 and later Bitcoin Cash all time lows of $350 in the coming weeks.
What we have in the daily chart is a morning star pattern after yesterday’s completion of a three bar bullish reversal candlestick. Notice than on June 13 sellers did slow down at $850, a key support line according to our analysis.
We can pick that up because at that time there was a volume spike but we didn’t see strong price movement to the down side like it has been the norm in the past couple of days. This mean Bitcoin Cash found support at that level and ideally, today could either make or break BCH short to medium term prices.
Here’s what I suggest: watching this BCH and buying it once we see up-thrusts above June 12 highs of $970. Only then would we buy with stops at $800 and buy targets of $1,200 and $1,800 on the ambitious side. On the flip side, any reversal of June 14 gains invalidates this projection.