Bitcoin Cash - Be Greedy When Others are Fearful
Amidst the hype of Bitcoin Legacy reaching a $20,000 high, CBOE and CME Futures, and today, even Litecoin is finding a new high, perhaps many people have forgotten about Bitcoin Cash.
From the persepctive of a trader or an investor, this is indeed a very good thing. Why? The answer is simple. The herd is always wrong. The best times to sell are when everyone is euphoric and greedy and the best times to buy are when everyone is depressed and fearful.
The reality of why is simple.
Fundamentally, Bitcoin Cash is Bitcoin. It's a pure hard fork of original Bitcoin, adhering strictly to the original whitepaper of electronic peer-to-peer cash.
Bitcoin Cash is not an altcoin. It is a fork of Bitcoin.
The major changes made during this fork are the blocksize went from 1MB to 8MB, and the way mining difficulty, which affects how often blocks are found for how much hashpower is on the network, changed from an adjustment every 2016 blocks, no matter how long they find to change, to adjusting each and every block based on the hashpower of the previous 144 blocks.
So, why should you care about Bitcoin Cash?
- Bitcoin Cash is a fork of Bitcoin. Not an altcoin. Market cap and trade volume reflect this. Dramatically. This is your answer to "why not Litecoin?"
Because Bitcoin Cash is #2 by both market cap and trade volume in the last 30 days, being almost double Ethereum.
- Bitcoin Cash has major support from ViaBTC, Antpool, Bitcoin.com, and BTC.top/BTC.com and will always have hashpower
Even under the condition wherein hashpower is over on the BTC chain taking advantage of it hitting $20,000, we still see Bitcoin Cash churning out blocks in a healthy fashion.
- Bitcoin Cash has a community whose growth is going parabolic. Real users are catching on and real businesses are starting to see adoption.
ViaBTC is launching a new exchange that will have Bitcoin Cash as a main trading pair.
Japan's SBI Group has a global market cap of nearly half a trillion dollars and announced today they've entered into a partnership with nChain, one of Bitcoin Cash's eight independent development teams, to accept Bitcoin Cash as a global daily payment solution
You want to see a pump created by global, organic demand from a fixed supply? Wait and see. 2018 is going to make non-believers eat crow.
- Bitcoin Legacy fees are $62/byte. Bitcoin Cash are 0.016/byte.
Bitcoin Legacy requires hours for a confirmation. Bitcoin Cash will confirm on the next discovered block.
Now for technicals.
Price action has shown a proper reversal from the $1100 area. We had a $450 immediate bounce followed by an obvious flagging pattern. This pattern has persisted through consolidation and is now looking to break upwards.
As of immediate time of writing, we've had a break upwards after consolidation inside the kumo. Hourly chart shows Kumo twisting green. Tenkan-sen is breaking out of the cloud and lagging span is very close to following it on the 12 minute chart.
Short term price action shows a shorter-term flagging pattern, but is yet to break upwards.
If this pattern breaks upwards and out of the downtrend line at approximately $1,500, we are looking at a run towards $2,000.
I’ve decided that I’m going to set the pricing for the trade structure at $9.88. Why did I come up with this number?
I am basing it on the average exchange fee for low volume “taker” fees of 0.25% on one Bitcoin Cash at an average price of $1,600.
This works out to $4, which works out to $8 because you have to buy AND sell. This is based on ONE BCH, and if I had to gander, I would bet most people are trading position sizes greater than 1 BCH.
I think if people are willing to pay an exchange $8/BCH to push a button, that at this price, there should be sufficient value in both my fundamental analysis and having a trade structure to follow with an analyst's continual updates.
I won’t even get started on what it would cost you to transfer 0.09 BTC right now.
In this post there will be:
- More fundamental analysis and news on recent events. Cumulatively, I put in between 3-6 hours of work just into the creation of each post
- Trade structure, strategies, stops, and targets
- Multiple updates as price action progresses.
Average trade structure post so far has gone on for 24-48 hours and has had ~10+ updates provided along the way.
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