Technical Analysis of BitcoinCash(Nov.15th)

In an effort to improve the efficiency of transactions, Bitcoin Cash broke off from the original Bitcoin network on 1 August 2017. Bitcoin Cash aims to take Bitcoin in a new direction geared towards faster transaction speeds and lower fees. Bitcoin Cash is one of the most valuable cryptocurrencies with the market capitalization of $8.2 billion, the current price of this coin is around $470. This is a highly speculative cryptocurrency and still very risky, according to some estimates Bitcoin Cash will not be able to replace Bitcoin and many skeptics believe it may not survive in the long-term. On the other hand, some analysts believe that Bitcoin Cash offers an improvement over other cryptocurrencies and will, therefore, gain value in the long-term. When we look at the 1-year chart we can see that Bitcoin Cash is moving in “downtrend”. As long Bitcoin Cash is below $1 000 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $400 and $500 – If the Bitcoin Cash jumps above $500 that would be a “BUY” signal and the open way to $550 and $600. If the Bitcoin Cash jumps above  $1 000 that could be a strong signal of the trend reversal and the open way to $1 500. On the other side, if the BTH falls below $400 that will be a strong signal “SELL” signal and the next target could be around $350 or even $300.

Advice: The price of Bitcoin Cash was above $2 900 in January 2018, the current price is around $470 but it is true that the price could fall even more. This is a highly speculative cryptocurrency and still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk. As for the technical picture, the Bitcoin Cash remains in bearish phase but if the price advances above $1000, short-term traders can enter the position with the stop loss at $890 and take profit at $1250 or even $1500.