Bitcoin Cash (BCH) Analysis 21/08/2018

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Bitcoin Cash (BCH) Analysis 21/08/2018

Posted on August 20th, 2018 in Bitcoin News by Tom Whitbread

Bitcoin cash had a hard time staying above $600 during August, and it could be heading lower if volume continues to drop below the current level.

For the past two weeks BCH has been consolidating around the lower $500 range, testing new lows, as buyer appetite has been sparse. Looking at current market sentiment, volume and frequency of updates on their Github it appears there could be lower lows to come.

Stochastic's remains low, near the oversold trench after the last failed rally. Possibly it can turn back towards oversold and fade into the weekend, especially if the dollar is further buoyed by a Federal Rate hike declared this week at the Jackson Hole symposium.

If price continues to follow along the Gann angles shown above (taken at a 45 degree angle from swing hi/lo on daily bar chart from Bitfinex) we see a likely case of support falling to $415 where previous there was a sharp uptick back in November. 

With reports of Bitcoin cash being used less and less by Merchants, and volume dropping substantially since the launch, there needs to be a strong catalyst to turn the momentum around. 

Full Disclosure: The author holds BCH, ICNN.news holds no positions