Long
Bitcoin Cash - Be Greedy When Others are Fearful
Full post will be available on my Yours (in my signature) after I've had some time to compose it properly.
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?
1. Bitcoin Cash is a fork of Bitcoin. Not an altcoin.
2. Bitcoin Cash has major support from ViaBTC, Antpool, Bitcoin.com, and BTC.top/BTC.com and will always have hashpower
3. Bitcoin Cash has a community whose growth is going parabolic. Real users are catching on and real businesses are starting to see adoption. 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.
4. Bitcoin Legacy fees are $62/byte. Bitcoin Cash are 0.016/byte.
5. Bitcoin Legacy requires hours for a confirmation. Bitcoin Cash will confirm on the next discovered block.
Fundamentals: check
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.
If this pattern breaks upwards and out of the downtrend line at approximately $1,500, we are looking at a run towards $2,000.
When I have some time to put a proper post together I'll post a trade thread on Yours.
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Stop the Organ Harvesting Persecution of Falun Gong Practitioners by the Chinese Communist Party: (dafoh.org/petition-to-the-united-nations)
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?
1. Bitcoin Cash is a fork of Bitcoin. Not an altcoin.
2. Bitcoin Cash has major support from ViaBTC, Antpool, Bitcoin.com, and BTC.top/BTC.com and will always have hashpower
3. Bitcoin Cash has a community whose growth is going parabolic. Real users are catching on and real businesses are starting to see adoption. 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.
4. Bitcoin Legacy fees are $62/byte. Bitcoin Cash are 0.016/byte.
5. Bitcoin Legacy requires hours for a confirmation. Bitcoin Cash will confirm on the next discovered block.
Fundamentals: check
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.
If this pattern breaks upwards and out of the downtrend line at approximately $1,500, we are looking at a run towards $2,000.
When I have some time to put a proper post together I'll post a trade thread on Yours.
==
Stop the Organ Harvesting Persecution of Falun Gong Practitioners by the Chinese Communist Party: (dafoh.org/petition-to-the-united-nations)
Note
Yours post is up (in my signature) with more details and resources. Trade structure will be provided when I get home and have a chance to sit down and do it. Everything takes an hour or two because time and proof reading and image posting and all that.
In the meantime
Upwards movement has stopped and is consolidating above $1400. Trading outside of the cloud is a good sign.
Let's see what happens.
Note
Trade structure now posted on Yours. We have a strategy for dealing with:
Current consolidation/choppiness
How to play the eventual breakout
How to manage your risk and where to cut losses if trade goes against you
Where to take profits and why; and
More analysis as to why Bitcoin Cash is fundamentally a big deal right now, even though everyone's attention is on Bitcoin Legacy and some of the currently surging alts.
Note
Things are looking good so far, in my opinionFirst part of trade strategy looking good. It's on Yours (in my signature)
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New update on Yours. Not too much to report. Price action is sleepy and consolidating while everyone is busy looking at the nearest pump and dump alt coin. Just remember with coordinate pumps like Litecoin that have distribution as centralized as Litecoin does (~70 addresses own 45%+ of all coins in existence. No, that's not normal and it's not just exchanges), when they're done pumping it, they start dumping it.
People lose money trying to get rich quick.
Winners make money trying to get rich steadily.
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Right now it would appear USD prices are being kept in line with BTC so as to preserve ratio.
We'll see if we get a divergence. This is why we set stops and have reasonable risk:reward structures.
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New update on Yours as to the current situation. Trade is still within parameters and risk is limited. Bitcoin Legacy appears to be entering proper correction now.
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New update on Yours. Price currently holding and consolidating. Still within parameters of trade strategy. Looking for a retest of $1400 resistance/support.Note
New update to Yours trade. Price continues to consolidate and show recovery. We have a choice to make in terms of sizing and risk and one or two things to watch out for. No reason to not be patient. It's the weekend after all.
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Update #6. The drop continues, but there's a sound reason. This reason confirms our theories about many things related to Operation Dragonslayer. That being said, we now have to make a decision based on risk at this level and where to look for possible continuations. We cover that.
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Update #7 on Yours. Markets continue to correct. Risk management is of paramount value. We now look for reversals and bounces is the strategic zones.Note
Update #8 on Yours. Nice recovery, though Legacy now breaks its downtrend line and rages towards a new high.Note
CBOE Futures are launching in ~6 hours. After some thinking and analysis, I've come to the conclusion it's very likely this is a stage in Operation Dragonslayer. Article is all fundamental analysis.
yours.org/content/cboe-futures-are-a-stage-of-operation-dragonslayer-373475469123
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Update #9 to trade thread. On the 3H chart we have a nice double bottoming pattern along a major meanline and are coming to the end of a triangle. Long positions now have strategic soundness to them again and we discuss that.
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Bitcoin Cash has broken out both on the ratio pair and the USD pair after Bitcoin Futures went live. Update #10 to the trade thread.
yours.org/content/bitcoin-cash---be-greedy-when-others-are-fearful-bea94775b35f
We may be right before _major_ demand comes about for Bitcoin Cash amidst BTC Futures.
Note
Possibly breaking out upwards with Bitcoin. Starting to look more bullish.
This week could be quite fortuitous.
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Update #11 on Yours. Trading sideways. Not a bad thing. Let's see what happens Monday morning. Ratio still looks bloody, but all things considered, that's normal.
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Update #12 on Yours. We have a small breakout and the consolidation is bullish. I recommend strengthening your position as get closer and closer to the end of consolidation, if you want to play this trade long. New post for Litecoin traders as well:
yours.org/content/litecoin---play-the-pump-and-dodge-the-dump-871c96e5c45b
Lots of complimentary fundamental analysis and an optional trade thread.
Note
OKEx just launched Bitcoin Cash as a full trading pairsupport.okex.com/hc/en-us/articles/115003368051
It's live.
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And privacy transactions just came to Bitcoin Cash. Functional and live. yours.org/content/cash-shuffle---privacy-comes-to-bitcoin-cash-54f8b0712282
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Not entirely sure what this was2300 BCH dump on BCHUSD. Nothing moved on ratio.
Maybe someone really wanted some more Tether? Stop hunt?
Finex is sketchy and you should get your money off it as soon as you can.
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Update #13 on YoursIt's alive! Both of them!
Legacy may have just double topped.
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New Update on YoursIt'sHappening.gif?
Ratio pair starting to break out and it looks aggressive. Perhaps this is the moment we've been waiting for.
Note
:(
It's a complicated market.
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It'sHappening2.gif
Update #15 on Yours. Revised target on breakout considering 3 days later.
Please bear in mind there's 3 hours remaining before candle close on the 4H chart.
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Breakout is legit. Movement is pretty solid. If you're concerned BCH is not performing as well as ETH and DASH and XRP and LTC, well, you're right, they aren't.
But, I have this feeling the situation is going to reverse soon. Call me crazy.
XRP is pumping because of Coinbase listing. The other coin Japan's SBI Group has chosen. Think it over.
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Careful trading, friends. FUD is hitting that South Korea is holding an emergency meeting for how to deal with crypto on Friday. That is 1 minute candles on BTCKRW from small Korbit exchange, because for whatever reason TradingView and all the money they charge can't get a datafeed from Bithumb even though they''re a market leader.
October bear market came on the back of the Korea ICO ban fud followed by China fud followed by Jamie Dimon fud.
Exceptionally similar pattern.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.