BCH/USD holds at the threshold, focuses on $500

[bitcoincash]

Bitcoin Cash price recently explored the downside under $400 following a sharp drop from highs close to the ‘big’ $500. The immense selling pressure at the $500 zone could not permit the bulls to push their action higher. Instead, Bitcoin Cash tumbled in search of balance before attempting another assault on the level.

Development in terms of recovery has been very forthcoming in a couple of days after BCH downside took a breather at $375. Aiding in the support was the 200SMA in the 4-hour timeframe. BCH/USD is back in the limelight above $400 and focused on sustaining gains above $425.

Technical analysis shows that the crypto is back in its bullish phase with the next milestone at $500. The bullish divergence of the MACD puts the bulls largely in control of the next direction BCH will take. Upside momentum is also supported by the RSI’s recovery from levels around 30. If the indicator crosses above 50 (average) and continues in the upward direction, Bitcoin Cash price could eventually smash past the key levels at $440, $480 and $500. Meanwhile, bulls must concentrate on defending support at $300 to avoid losses that could retest $375 support area.

Tether to launch on Bitcoin Cash blockchain
The leading stablecoin in the industry, Tether (USDT) is likely to launch on BCH blockchain according to Bitcoin.com CEO, Roger Ver. Ver said that Tether has been attractive to many users around the world, even in China where activities regarding crypto (accept mining) have been restricted.

"There's already a couple of stablecoins on Bitcoin Cash but the world's biggest stablecoin so far has been one called Tether. [...] A little birdie told that that's about to launch on top of Bitcoin Cash and SLP as well"

[randersonserto]

Does the technical analysis thing really work?

[grabberfish]

Does the technical analysis thing really work?

Yes and no. Human psychology is an odd beast and we are predicable in some ways. For example, when the price rises to a point that has perceived significance, there is frequently a series of trades that take place. This can be seen as prices hit "rounded numbers", such as 10USD, 100USD, 1000USD, etc. People often tell themselves that they will "sell at X" and do so. Because we know this will happen, we can forecast that there will be more sellers than buyers at price point X and can therefore enter a short position just below that price. The opposite also works, where we see patterns of significant support on a downwards trend and can enter a long position on approach to the trigger point.

It must be remembered that Technical Analysis (TA) is not an exact science, but should be used in conjunction with other mechanisms for market analysis. Right now we are seeing prices falling due to global markets falling on the back of the COVID-19 outbreak. This has been causing significant disruption to business delivery channels and therefore investors are aware that earnings will be impacted. That causes selling of assets, which leads to a knock-on lemming effect, as non-related assets tumble in the ensuing panic.

Bitcoin, as a fringe investment, will take a greater brunt of the beating in such markets.

The time to buy is when there's bloody in the streets.
-- Nathan Rothschild

Steve Nison has written some excellent books on Japanese candlestick charting techniques, for those interested in reading further.