The cryptocurrency market has been undergoing a roller coaster ride with some coins seeing green with others still reeling under the impact of the bear. Bitcoin Cash [BCH] which has been on an upsurge for the past twenty-four hours has not stopped its bullish march.
In October, Bitcoin Cash announced it will execute an upgrade of the network consensus rules resulting in a hard fork. It will take pace on 15th November,2018. Since then the bulls have been in control.
Bitcoin Cash is now ranked in 4th position in terms of overall market cap across the entire industry. It holds a total market cap value of around $9.3 billion after undergoing a rough 90 day period where the market saw a price decline totaling -30.62% from low to high.
Bitcoin cash has seen a bullish price run more than 15% over the past 24 hours. The cryptocurrency is presently trading at $534. It touched $550 earlier today and its 24hour low was $458 on Binance. Just a week ago it was trading at a low of $417 across exchanges.
In the long run, the current price surge will face a stiff resistance in the zone of $591.41–$660. If price sustains above this zone, it can climb to $800.
According to cryptocurrency technical analyst Eric Thies, in previous major corrections, the cryptocurrency market had not shown such a low level of volatility until the accumulation phase.
Throughout the past two months, mostly due to low volume in the market, major cryptocurrencies remained relatively stable in a low price range. He said,
“1 week Historical Volatility levels (per CoinMarket Cap) did not reach this low in 2014 bear market until mid-way into accumulation phase. Surprisingly, volatility didn’t bottom out until price was already +155% from the trend low,” Thies said.
Looking at the technical indicators
- 4-hours MACD – The MACD for BCH/USD is back in the bullish zone.
- 4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently near the overbought levels.
- Major Support Level – $480
- Major Resistance Level – $550
Coinbase anncouned its support
Coinbase is one of the most important companies in the crypto-space. Hence any word from their side sets the stage. On November 3, Coinbase released a statement to its investor disclosing its support for the original roadmap of Bitcoin Cash from bitcoincash.org. Throughout the next two weeks, Coinbase, the largest crypto-to-fiat exchange in the global market, stated that it would take appropriate steps to evaluate the network and support BCH.
“Twice a year, the Bitcoin Cash (BCH) network hard forks as part of scheduled protocol upgrades. The next BCH hard fork is scheduled for Nov 15, 2018, and Coinbase is prepared to support the published roadmap from bitcoincash.org. However, unlike previous BCH hard forks, there is a competing proposal that is not compatible with this published roadmap.”
Binance got on onboard
Just days after Ledger, one of the largest hardware wallet providers globally, announced their own policy on the upcoming Bitcoin Cash hard fork, cryptocurrency exchange giant Binance has stated that it will be supporting both sides of the split. The news came via a post on the firm’s designatedblogon 2nd November. It reads,
“Binance would like to confirm support for the upcoming Bitcoin Cash hard fork. We will take a snapshot of all Bitcoin Cash balances at UNIX time 1542300000, 2018/11/15 4:40:00 PM (UTC).”
The post goes on to state that the exchange will suspend all deposits and withdrawals an hour before the proposed time of the hard fork. Binance also said that customers should make sure to leave sufficient time for the processing of deposits.
The announcement by binance triggered the resistance levels and we saw double digit profits today.
Looking ahead we might see a minor correction towards the end of the day today till $500, but in the coming two weeks Bitcoin Cash is a strong Buy due to the hard fork.