Week 1 of 21 - Bitcoin Cash (BCH) Surveillance Report
Good morning or afternoon depending where in the world you reside.
Week in Crypto (Top Events):
New - Litecoin founder - Charlie Lee - experimenting with privacy MimbleWimble and you can soon buy a Maserati with Litecoin payments. Follow Charlie Lee on twitter for more details on these updates.
#1 - Baakt continues to make headlines and progress in launching their proprietary digital asset market place that will offer a institutional grade custody program combined with a fully regulated digital asset exchange and physically delivered futures on Bitcoin . Understanding their partnerships with Starbucks , Microsoft as well as their relationship with I.C.E ( Intercontinental Exchange ) which operates traditional exchanges like the NYSE is a news worthy event to follow in the coming months. In the past two weeks they have closed initial funding rounds and have raised over $180M. This week they are on a hiring spree for core developers. Follow their twitter for the latest updates.
#2 - Jack Dorsey - CEO of Twitter - was recently on the Joe Rogan podcast promoting Bitcoin and digital assets as a revolutionary technology. He believes Bitcoin will become the world currency in our lifetimes as it was born on the internet and will become the currency of choice of the internet. Square continues to outperform on the stock market and allows for bitcoin payments to be sent and received via their app as well as fiat.
#3 - Dan Morehead - CEO of Pantera Digital has said recently despite the market sentiment in prices the fundamentals in the ecosystem have never been stronger. He believes all the innovation and infrastructure that is being built to accommodate institutional investments has calmed any doubts whether blockchain technology and Bitcoin is here to stay or not.
Despite the positive fundamentals what does the technical picture tell us?
BEARS - The Bitcoin Cash fork was a negative sentiment changer for the community and this showed up in the price action. It was only in November BCH reached $640 and post fork fell to $74 five weeks later. Bears have taken advantage of this uncertainty and have squashed any bull rally attempts from materializing. This is evident with prices remain fixed below the 50 Day SMA. If bears are successful in pushing prices below $97.90 a likely retest of the December lows of $74 is very likely. We also feel that a double bounce is unlikely at this level and that a break below $74 could ensue panic selling. BCH could panic sell to a drop to the 161.8% Fibonacci retracement of $18. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price of $97.90.
BULLS - Bitcoin cash Bulls have a lot of work to turn things around. First they need to break above the 50 Day SMA, then above the descending channel and confirm this as support. Only then can we be more confident in placing a potential buy order at around $178. The market sentiment around Bitcoin Cash will be confirmed once it breaks above its 200 Day MA around $400. If and when this happens only then can we confirm a bottom is likely in.
RSI - Bears are in control with an RSI sitting at 40. Bullish momentum will be confirmed once it scales above 50 and approaches 60.
Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull. Bitcoin cash tends to violently move up or down in conjunction with Bitcoin so we can only trade confidently in this coin when a trend is established. We have no interest in catching falling knives.
Regards,
Bobby
Today marks the launch of my 21 week trading program where I will be publishing text and video content M-F. I will be updating this report Wednesday and Friday this week so be sure to hit the like and follow to get notified.
Week in Crypto (Top Events):
New - Litecoin founder - Charlie Lee - experimenting with privacy MimbleWimble and you can soon buy a Maserati with Litecoin payments. Follow Charlie Lee on twitter for more details on these updates.
#1 - Baakt continues to make headlines and progress in launching their proprietary digital asset market place that will offer a institutional grade custody program combined with a fully regulated digital asset exchange and physically delivered futures on Bitcoin . Understanding their partnerships with Starbucks , Microsoft as well as their relationship with I.C.E ( Intercontinental Exchange ) which operates traditional exchanges like the NYSE is a news worthy event to follow in the coming months. In the past two weeks they have closed initial funding rounds and have raised over $180M. This week they are on a hiring spree for core developers. Follow their twitter for the latest updates.
#2 - Jack Dorsey - CEO of Twitter - was recently on the Joe Rogan podcast promoting Bitcoin and digital assets as a revolutionary technology. He believes Bitcoin will become the world currency in our lifetimes as it was born on the internet and will become the currency of choice of the internet. Square continues to outperform on the stock market and allows for bitcoin payments to be sent and received via their app as well as fiat.
#3 - Dan Morehead - CEO of Pantera Digital has said recently despite the market sentiment in prices the fundamentals in the ecosystem have never been stronger. He believes all the innovation and infrastructure that is being built to accommodate institutional investments has calmed any doubts whether blockchain technology and Bitcoin is here to stay or not.
Despite the positive fundamentals what does the technical picture tell us?
BEARS - The Bitcoin Cash fork was a negative sentiment changer for the community and this showed up in the price action. It was only in November BCH reached $640 and post fork fell to $74 five weeks later. Bears have taken advantage of this uncertainty and have squashed any bull rally attempts from materializing. This is evident with prices remain fixed below the 50 Day SMA. If bears are successful in pushing prices below $97.90 a likely retest of the December lows of $74 is very likely. We also feel that a double bounce is unlikely at this level and that a break below $74 could ensue panic selling. BCH could panic sell to a drop to the 161.8% Fibonacci retracement of $18. We feel there is enough of a risk/reward ratio to place a short if the bears are able to break below our short entry price of $97.90.
BULLS - Bitcoin cash Bulls have a lot of work to turn things around. First they need to break above the 50 Day SMA, then above the descending channel and confirm this as support. Only then can we be more confident in placing a potential buy order at around $178. The market sentiment around Bitcoin Cash will be confirmed once it breaks above its 200 Day MA around $400. If and when this happens only then can we confirm a bottom is likely in.
RSI - Bears are in control with an RSI sitting at 40. Bullish momentum will be confirmed once it scales above 50 and approaches 60.
Trade suggestion: We are not recommending any trades until there is more market clarity whether you are a bear or bull. Bitcoin cash tends to violently move up or down in conjunction with Bitcoin so we can only trade confidently in this coin when a trend is established. We have no interest in catching falling knives.
Regards,
Bobby
Today marks the launch of my 21 week trading program where I will be publishing text and video content M-F. I will be updating this report Wednesday and Friday this week so be sure to hit the like and follow to get notified.
Comment:
Adjusted Buy and Short entries for BCH. Be sure to check out my latest video on BTC Market update from today.
