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Bitcoin Cash Price Analysis: BCH/USD Runs into Heavy Sellers, Despite Poloniex Launching Pre-Fork Trading

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  • Poloniex exchange listed options to buy Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV) trading tokens.
  • BCH/USD runs into trouble after entering chunky supply area; price being forced to retreat. 

Poloniex Pre-Fork Bitcoin Cash Trading

Poloniex has announced that it would be the first exchange that will offer trading for the imminent Bitcoin Cash (BCH) hard fork. The exchange earlier in the year was acquired by Goldman Sachs-backed start up Circle for $400 million.

It was detailed by the exchange that commencing from Wednesday evening, it has begun to offer customers the option to buy Bitcoin Cash ABC (BCHABC) and Bitcoin Cash SV (BCHSV) trading tokens. It is noted however on their website “deposits and withdrawals will be enabled after the fork happens and the network is stable.”

Poloniex has never made such an offering prior to a possible fork. It explained that this is part of a larger strategy, as detailed in their most recent blog post. “We’re doing this to empower customers to demonstrate their support for one coin over the other through trading activity. Poloniex will also support trading markets for both tokens after the hard fork.”

Technical Review – BCH/USD

BCH/USD daily chart

BCH/USD ran into some trouble yesterday, after seeing a chunky rejection within a known heavy area of supply. A firm daily closure in the red was observed, and this has continued in trading today, nursing further losses. As of the time of writing, BCH/USD now over the course of the past two sessions is nursing double-digit losses.

The supply zone is seen tracking from around $635 up to $660, as firmly demonstrated between 2-4 September. This was the last time BCH/USD traded in this territory, which led to a chunky sell-off. Bitcoin Cash went on to drop over 35%, after trading within the mentioned supply. Falling to lows of around $410. At the time, this was the lowest price print seen since October 2017.

Support Areas

Given the current downside momentum, it is worth looking at the next areas of support to catch the falling price. Firstly, the psychological $500 mark will be eyed, around this level for a potential safety net. Should this fail to hold, then as seen between the above-mentioned period, 2-4 September, the bottom of $410, could come back into play.

Due to the excessively large rally seen for BCH/USD over eight days initially, it isn’t too surprising seeing a pullback. When any market sees such chunky short-term moves, it does leave it very much vulnerable to a pullback, profit-taking from the highs. Consequently, this is occurring for Bitcoin Cash and several of its peers.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 60 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Altcoins

Zcash Price Analysis: ZEC/USD Flood Gates Open After Breakout and Retest from Pennant

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  • ZEC/USD licking its wounds with deep double-digit losses as the market continues to take a beating.
  • Next major areas of support are eyed at currently levels around $89.50 and then $75.

Zcash has been under chunky selling pressure, no thanks to the larger weakness seen across the broader crypto market. The ZEC/USD exchange rate is nursing deep losses, running at two consecutive sessions firmly in the red. At the time of writing, the price has dropped over 25% in the last two sessions. This extended downside comes after a breach and retest from a pennant pattern.

ZEC/USD daily chart

ZEC/USD had moved within the above-mentioned technical set up since 12th September. The formation of this set up took shape following a deep market sell-off from the back-end of July to mid-September. Price behavior was very much consolidation mode, forming this pennant. Playing out to the textbook, a breakout from the set up was seen.

Further on the above, the firm daily breach came on the 14th November. The few daily sessions that followed this were within consolidation mode. Subtle retests underneath the broken pennant were seen. The Monday session saw the extension further south after the brief retest period. The bears smashed through the big psychological $100 mark, leading prices to the downside.

As a result of the above price developments, ZEC/USD selling pressure has forced a move on the current daily candlestick below a vital demand area. While the $105 – 95 range has proven to see buyers sweep in, sellers are proving to be too much to handle. This area previously served as a strong safety net, on 12th September, where decent buying came into play.

Support Levels

ZEC/USD weekly chart

Viewing the weekly chart, the bears are currently testing the lowest levels seen since May 2017 to the downside. This is seen just below the $90 level. Looking further south, the next major downside target is seen at the $75 area. This is a weekly support level, which was last in play back in April 2017, when the price started to pick up bull momentum.

A breach of the above-mentioned areas could be catastrophic. Eyes would then be on ZEC/USD potentially free-falling a further 50%, down within $40. This would be the next major consolidation area that could provide some firmer footing. The price last traded here in March 2017. This would be the very extreme scenario but cannot be ruled out.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 60 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Altcoins

Bitcoin Cash Price Analysis: BCH/USD Hard Flops as Price Moves Within the Abyss

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  • Bitcoin Cash price falls into uncharted territory, struggling to find a bottom.
  • Weekly chart still points to further downside, RSI not within oversold territory as of yet.

The Bitcoin Cash price remains heavily on the back foot, the standout under-performer across the major altcoins. BCH/USD is currently running at three consecutive sessions of losses. The streak could have been much longer, however the price was given a breather ahead of a pick up in downside intensity. In the past two weeks, BCH/USD has dropped over 60%.

As covered in an article earlier in the month, BCH/USD failed to break down a key area of supply. This was seen within the $650 territory; the price had faltered here in early September. It was forced back down to the south, to then retreat at some neckline support, $410.

BCH/USD daily chart

The most recent occurrence within the above-mentioned supply zone was seen between 6-8 November. Heavy sellers piled in, forcing the price initially down to the neckline support, $410. Between the 15-19th November, BCH/USD had breached, retested and consolidated around this area, before a resumption of further bloodshed.

Downside Targets

Looking via the weekly chart, the BCH/USD exchange rate demonstrates that the price is literally falling into the abyss. This fall is very much uncharted territory, so the bears are free to drive this a far south as it needs to be taken. In terms of the RSI, this indicates that there is still some room for this to be driven lower. It has not quite reached oversold territory yet.

BCH/BTC weekly chart

When observing BCH/BTC, at the time of writing the price is testing the previous session’s low. This area is significant as it provided much needed support in October 2017. A break here and close below 0.04775 could be punishing. This again is movement into an unknown realm of price action, so it remains unclear where the bottom will be at this time.

Upside Targets

In terms of upside barriers, given the recent price action, new areas of resistance have been formed. Firstly, around the $370 level, as this was the former acting support during the consolidation between 15-18th November. Furthermore, eyes would then be on a retest of the breached neckline former support, $410. Lastly, should both these areas be conquered again, the supply from $600-650 would be next up.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 60 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Altcoins

Litecoin Price Analysis: One Last Safety Net Ahead of $20 Territory

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  • Litecoin has been further slammed, dropping 35% over the past two weeks of trading.
  • Should near-term demand area of $35-33 fail to hold, it will be very punishing.

The Litecoin price remains firmly on the back foot, one of the standout under-performers in this current bear market, against some of the other major altcoins. LTC/USD has dropped a chunky 35% over the past going on 2 weeks now. Market bears have been pilling in since the big rejection, after trying to escape out of a bearish pennant pattern. This was attempted on 7th November, the upper trend line of the pennant proved to be too tough.

LTC/USD daily chart

Just a few sessions ago, LTC/USD collapsed through the lower support on the above-mentioned pattern. This was seen around the $49 mark, where the bears came pilling through to further crumble Litecoin. The price plummeted through a strong prior acting demand zone. It was tracking from the big psychological $50 area, down to $47 territory. Bulls had propped LTC/USD on occasions in August, September and October, leading the price on to make decent gains from the noted zone.

LTC/USD 4-hour chart

Between 15-18th November, price action did enter a temporary form of consolidation. As mentioned in the previous article , LTC/USD was trading within a range block, which was very much vulnerable to a breakout south, having since proved to be the case. It was eyed also as a bearish flag pattern set up, where sellers took a deep breather, ahead of the continued deep move south. LTC/USD lost over 15% from that consolidation area to current levels.

Key Support

LTC/USD weekly chart

Looking to the downside, eyes are locked in on the price range of $35 down to $33. The LTC/USD pair had consolidated within this area from June to August 2017, before being off on its journey north. In September 2017 this demand area proved required support for the bulls to continue their stampede higher. A failure to hold here will be very punishing to say the least. LTC/USD could be forced back down to $29 territory. The price was last seen here in June 2017.

Upside Barriers

There are now some big challenges ahead for LTC/USD, if it wants to return to heightened levels. During this bear market observed throughout this year, price action has formed new areas of resistance. It has all been uncharted territory, and unlike the 2017 bull run, there will be barriers that need to be broken for greater upside. The gains seen last year were not too challenging to achieve, as there was no history there for the bulls to deal with.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 60 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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