BCH : Still another 24% Upside Available
BCH or Bitcoin Cash has a Civil War amongst its hands next Friday with the upcoming Hardfork – emails being released and fundamental news for either one of the upcoming protocols. This along with Bitcoin’s potential fall to $6280 could see it re-set to $555 before pumping to $680.
What does the Technical Analysis Show:
- BCH is positively correlated to BTC by 0.84 – this means that if Bitcoin goes to $6285 – BCH will go to $555 before revisiting $680.
- There are a lot of volume gaps between $650-670 – therefore Nouvive Intelligence definitely sees these levels being hit.
- Volume has been far higher than the 90D Average.
- The past 6 hours has seen negative sell side volume as a result fo the Bitcoin Dump.
- The RSI Stochastic is HEAVILY OVERSOLD and recently crossing-over implying that over the next several hours we should see a reversal following BCH dumping to $555.
- The OBV that shows Open-Interest will bounce off the golden line drawn by Nouvive Intelligence following its hit to $555.
- The $555 area – why its significant is this is the previous re-fuelling for Longs as well as its just under the 0.618 line – an area of support whenever a coin cools down.
What does Nouvive Intelligence Say?
- Following the civil war between BCH protocols – it appears that there will be two coins that come out BCH – with the vast majority of exchanges supporting the hard fork.
- As a result of the hard fork most traders and long-term investors will enter into a trade to get both the coins before selling both of them off.
- This will cause a large dump to revisit the $424 area following the Hardfork.
Levels to Watch For:
- $555 as a new supply zone in the event Bitcoin falls to $6280 – BCH would be looking to refuel in this area
- $6000 An area of resistance
- $640 – previous High for the month of November
- $680 – Volume Gaps have to be filled here
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