Bitcoin Cash (BCH) is designed to be an improvement and replace the original Bitcoin, so the argument across investors has been that Bitcoin Cash should we worth as much as the original Bitcoin.
BCH has now fallen by 26% from its November 24 high and is trading relatively near the support area of $1121-$1265, and if BCH manages to bottom out around current levels, then I suspect that traders will target the November 24 high of $1777. However, on a failure of the $1121-$1265 interval to hold as support then price might slip the next support level, which is the November 17 low of $849
Thanks for you analysis. Do you expect us to move below 1121 in this current BTC downward move or can we hold possibly?
TradingBullAI
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@davidlovesgolf, It looks like it will try to take out 1121, but its late in the day so it could be a false move. I would give it a day or so to see if buyers step in and create low that could be used as the base for long positions.
AesopsHare
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Hi,
Thanks for the analysis - always good to read contributions to BCH.
Logically, BCH makes more sense than Bitcoin over the longer term, but unfortunately logic is often absent from the crypto sphere!?
The major spike to $2800 on 12th November was caused in large part by the struggle of bitcoin to process transactions after the aborted segwit2x fork; hence money went looking for a better alternative; with this current correction, there are no fundamental issues with Bitcoin itself, just a fearful dump of nearly all crypto's (maybe excluding Dash).
Despite the dramatic fall, the total market cap of all crypto's is only back to where it was at the end of last week (280bn) from a peak of 343bn, so is not yet a major correction; if it follows the path of the previous two corrections this year (September and June) this would take the total market cap to around 170bn, so depending on how this pans out, there could be a long way to go yet!
Bitcoin Cash's strength is when there is uncertainty with Bitcoin itself, which is not apparent at the moment, so it makes BCH just another crypto.
It is always challenging trying not to get sucked in to the FUD, as things will undoubtedly start climbing again in the not too distant future!