Bitcoin Cash [BCH] investors may be able to sigh in relief as the bulls are starting to outpace the bears on the short-term. After being on a consistently downward drift, the prices seem to be recovering, with all indicators pointing at an imminent bull run.
The fourth-largest cryptocurrency in the world, BCH, is currently trading at $443.30, after going up 0.39% over the past 24 hours. It enjoys a market cap of $7.72 billion, with a 24-hour trade volume of $258.24 million.
On the one-hour chart, a strong downtrend can be seen from $453.7 to $447.5 between October 16 and October 21, 2018. This trend continues till October 24, 2018, from $451.8 to $442.2.
The only significant upward trend that can be seen is between October 19 and October 22, 2018, from $426.7 to $441.4.
The Awesome Oscillator shows consistently green bars for a while now, indicating a generally bullish market.
The Chaikin Money Flow indicator currently stands at +0.0659, indicating that money is flowing into the market. However, the trend seems to be slowing down, but the market is expected to remain bullish.
The Parabolic SAR dots have aligned themselves below the candlesticks, indicating a bullish market in the short-term.
The one-day chart shows a strong downward trend emerging from the long-term resistance of $1142.6 to $525.9. The downward drift has remained strong between October 9 and October 24, 2018, from $525.9 to $442.1.
The only significant uptrend is seen between September 26 and October 10, 2018, from $446.4 to $509.7.
The MACD graph shows the MACD line on an upward movement after a bearish outbreak, followed closely by the signal line. The lines are inching closer to each other, pointing at an imminent bull run.
The Fisher Transform graph shows the Fisher line on an upwards movement, crossing the signal line. This points at a bullish market. However, the line is slowly flattening to indicate a trend reversal.
The RSI graph shows the RSI line swimming in the bottom but is recovering from a slightly oversold position. The buying and selling pressure seems to be evening each other out, refusing to clearly place a prediction.
If the prices are to go up in the short-term as indicated by the Awesome Oscillator, Chaikin Money Flow and Parabolic SAR, the immediate resistance will be at $445.9. If this is broken, the next resistance will be at $451.9.
In the long-term, if the prices move up, as predicted by the MACD and Fisher Transform chart, the immediate resistance will be at $509.7. If this is broken, the next resistance will be at $565.8.
If the prices fall after a trend reversal if immediate support will be at $428.3. If this is quashed, the stronger support will be at $417.6.
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Wall Street is on the losing side of Bitcoin’s impressive price rally
Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.
Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.
The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].
A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.
Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.
Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.
BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.
Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.
In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.
Who said Coin Street doesn’t go past the Wall Street express lane?
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