Bitcoin Cash short-term Price Analysis: 10 August
Bitcoin Cash, the popular fork of Bitcoin, seemed to be holding well on the charts with its price noted to be $305, at the time of writing. Bitcoin Cash, formerly the 4th largest crypto-asset in the market, had a market of $5.66 billion, with the last 24 hours ringing with positive developments for BCH. Now, it would seem that more may be on their way.
Bitcoin Cash 4-hour chart
Source: BCHUSD on TradingView
The attached chart shows the formation of a symmetrical triangle, one which when viewed in conjunction with the surge that preceded it, shows the formation of a continuation pattern. As the name suggests, the breakout from the pattern would imply a continuation of the trend that preceded it, ie., a surge.
This surge could push the crypto's price by as much as 8% - 15%, depending on the volume of the breakout and the buyers. On the flip side, if the price breaks the trend and dips due to unforeseen events, the drop will be supported by the combination of the 50, 200 DMA [yellow, purple] at $260.
Additionally, the RSI indicator was in the neutral zone, an observation that also coincided with the pattern which said that after the initial surge, the price will consolidate while some investors take profits and some add more to their longs. As this consolidation was nearing the end of the symmetrical triangle, a breakout is awaited.
The targets include an 8% surge which will put BCH at $331.67. If the momentum persists, BCH's price may be pushed up to $352.5, which is a 15% surge from the press time price level.
With the recent price surge of~40%, whales holding BCH seem to have come down. Further, the number of investors holding anywhere between 10,000-100,000 BCH [$3 million-$30 million] has also
Data from @santimentfeed shows that the selling pressure behind #BitcoinCash is surging dramatically. The firm recorded a major drop in the number of addresses holding 10,000 to 100,000 $BCH.— Ali Martinez (@satoshilatino) August 7, 2020
Since Aug 1, roughly 10 whales have left the network, representing a 5.6% decline. pic.twitter.com/uriR5j8K8q
by 10 since 1 August.
Additionally, BCH devs are concerned about the upcoming November protocol which might even cause the chain to split. This split will be the second time as the first BCH fork gave birth to Bitcoin SV, a camp controlled by Craig Wright and Calvin Ayre, as opposed to BCH's Roger Ver.