BCH/USD pair and Bitcoin analysis (#10)
Gold rush continues! Lot of events sparking bullish sentiment on Bitcoin and records keep falling. Bitcoin cash joining a party being not so bullish.
I predicted in posts #8 and #9 that a correction of Bitcoin price will occur to levels around $7500. Chart shows clear indications in divergences of MACD and RSI oscillators. But this correction never happened. I think that double top pattern is forming, but bulls had other things on their minds. MA90 90 day moving average was penetrated after few days and this was the last spot where bears have a chance to pull the price into correction.
Te battle was lost for bears and victorious bulls rally up. Records start falling. First the $9500 mark and then the $9500 mark was tested at the time of writing. For a while, I will stop writing about corrections which will be technically correct. There is more possible that we will witness just some consolidation before another bull assault.
And where Bitcoin intent to stop, just for a while, because many sees continue run upwards. I will expose two arguments for a stop. First is from charts and another have psychological explanation. On the next picture is evident that the near future pick in price will be around $11000.
If we draw Fibonacci retracement levels from China exchanges ban at $2900 to the first try of $8000 mark, we can get some clues where the next price pick will occur. In trending market Fibonacci levels are very reliable because all traders use them. So price will hit some resistance on $10000 but it will probably clime up tu $11000 mark in next few weeks.
If we analyse everything from psychological perspective, there is more and more adoption from traditional financial circles. Before the start of Bitcoin futures trading on CME, some small whales will start to pumping price. If institutional investors and hedge funds start entering the market, they will dance their bearish bailey and try to put the price lower for a good starting entry. The effect of this move is very unpredictable. It could be by the book, but it could become very nasty.
Bitcoin cash is not in the center of attention for now. Last time when volatility strikes, he was playing in opposition with Bitcoin, but this time he will run together with Bitcoin or more probably, he will consolidate on the gained ground.
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Image sources: Investing.com
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