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Ethereum (ETH) Bitcoin Cash (BCH) Price Analysis – Scoping Out a Capitulatory Opportunity

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Ethereum

Given the indisputable bear cycle that we have witnessed in the crypto complex for essentially the entirety of 2018, and given the relatively sparse options that traders have at hand to take advantage of short side strategies in this asset class, generally speaking, the game that most everyone is playing here has something to do with market timing around a bottom-picking strategy.

Bear markets make bottoms by exhausting a supply of sellers. It’s a process that is about gauging the “lean” of the marketplace across a number of time frames. For both Ethereum (ETH) and Bitcoin Cash (BCH), we see this process as potentially nearing that golden inflection point. As such, our goal today is to examine the charts for these two coins with the objective of scenario-building based on years of experience across many different assets given the technical picture often involved in defining major turning points.

Ethereum (ETH)

Price Analysis:

  • High: $445.98
  • Low: $429.00
  • Major Resistance Level: $500
  • Hourly MACD: Steady Downside Momentum

Chart courtesy of tradingview.com

 Ethereum (ETH) continues to evidence the modal character of a downward trending market on multiple time frames. But, over the course of the trend from the early May highs to its present position probing support near the 400 level, we can begin to understand some of the ways in which this market might play out a type of capitulatory purge that may well represent the impetus for a consensus lean necessary to mark out conditions consistent with a cycle low scenario.

The idea here is about constructing a reasonable hypothesis about a broad psychological “give up” point. In other words, what would this market have to do to make current “fast money” longs jump ship and give up?

It may well be that this is exactly what is necessary to exacerbate the downside enough to mark out a capitulatory low that could be highly valuable as an entry point for prospective bulls waiting in the wings.

Based on the image above, we can see a trend line that connects the lows from 2017 during the summer with the lows logged in late March and early April. The simultaneous break below this trend line, that would no doubt also represent a break underneath the critical $400 level, might well force current holders of this coin to capitulate and throw in the towel, thus exacerbating the downside movement to a point beyond its natural inflection level.

If we see such a market event, and if it comes on above-average volume over the course of several days, one should be watching this coin closely for an immediate snapback or rebound that suggests that the overshooting dynamic has blossomed and played out, thus creating the potential for a patiently earned low-risk speculative entry point with a fixed point of risk at the lows of the capitulatory spike.

Bitcoin Cash (BCH)

Price Analysis:

  • High: $706
  • Low: $673.8
  • Major Resistance Level: $1000
  • Hourly MACD: Steady Downside Momentum

Chart courtesy of tradingview.com

Bitcoin Cash (BCH) is actually in a very similar technical posture to Ethereum (ETH). In this case, with BCH, the key level to watch is at $600.

Here as well, we see a recent and persistent downward trend from late April and early May that has led to a retest of lows logged right around the end of the first fiscal quarter. To further highlight the similarities, there is an important trend line in play here as well, but this one has already been broken, suggesting this decline is in a more advanced phase.

While the correlations between the two, and between both of these and the larger cryptocurrency complex, are clearly dramatic and profound, the fundamental precepts of technical analysis suggest that that’s no excuse for diligent study of the action on the chart.

We often see dynamics that may be explained away by larger asset class phenomena, but that also contain important nuances. And in the case of these coins, the inherent volatility within their localized patterns is great enough that any edge can produce enormous and even game-changing differences for traders positioning themselves here.

However, with Bitcoin Cash (BCH) – as with Ethereum (ETH) – the trend remains to the downside suggesting the importance of an opportunistic and patient approach. This implies the importance of watching for overly dramatic movement to assign some degree of probability to an opportunity to play countertrend.

In this case, one may be wise to wait for a new all-time lows print on oscillators such as the 14-day RSI, confirming the sense that the extremes of selling represent an aberration from typical statistical assumptions.

Happy Trading!!

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels

Charts courtesy of tradingview.com

Altcoins

My Crypto Heroes Announces Issuance of MCH Governance Token

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Tokyo, Japan, 24th November, 2020, // ChainWire //

My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH. 

My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.

What is MCH Coin?

MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.

Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.

The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:

https://medium.com/mycryptoheroes/new-ecosystem-with-mchcoin-en-a6a82494894f

During December 2020 the first governance…

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Altcoins

Rewards Platform StormX Offers 50% Crypto Cashback Bonus for Thanksgiving

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Singapore, Singapore, 23rd November, 2020, // ChainWire //

Blockchain-based rewards platform StormX has released a seasonal promotion for its award-winning Crypto Cash Back App. The promotion will allow app users to earn a 50% bonus on top of their cashback between Thanksgiving Day and Cyber Monday (November 26-30).

StormX has also introduced a brand-new staking service, allowing users to earn an additional 50% per year when they stake STMX tokens. The native ERC20 token of the StormX ecosystem, STMX has a total supply of 10 billion and is available to trade at many of the world’s top exchanges, including Binance and Bittrex.

“With Bitcoin’s price approaching its all-time high, interest in cryptocurrencies has renewed, though some people believe it’s now too expensive to buy in,” said StormX CEO and Co-Founder Simon Yu. “What we have done is create an easy way for such individuals to accumulate bitcoin, ethereum and other cryptocurrencies via everyday shopping.

“We’re also excited to provide users with the ability to earn greater rewards simply by staking their tokens.”

Since the StormX mobile app launched its Shop feature with over 700 stores in February 2020, some 400,000 unique users have been added to the rewards platform. StormX has also witnessed over 50% month-on-month growth for sales. The app is available for download on the App and Google Play Stores, and can be downloaded as a browser add-on from the Chrome Web…

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Altcoins

BITTREX GLOBAL CONFIRMS FREE TRADING AND LISTING FOR TOP DEFI TOKEN

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Valduz, Liechtenstein, 17th November, 2020, // ChainWire //

International cryptocurrency exchange promotes free trading and no gas fees for leading DeFi tokens

17th November 2020 — Bittrex Global GmbH. announced today 8 new DeFi tokens will be listed this week including:

  • UMA (UMA)
  • Aave (AAVE)
  • Balancer (BAL)
  • REN (REN & renBTC)
  • Kyber Network (KNC)
  • Band Protocol (BAND)
  • YF Link – (YFL)

Bittrex Global’s users can trade all of their DeFi  tokens with no trading or gas fees until 2021. The decision to enable free trading on Bittrex Global for DeFi tokens  follows on from the 1,000% growth of the DeFi asset class over the course of 2020.

The decision to enable free transactions will see more investors enter the Blockchain Act’s digital asset regulatory system, supervised by the Financial Market Authority in Liechtenstein (FMA) under the Due Diligence Act which requires traders to comply with the KYC/AML/CFT standards.

“The last year has seen huge growth in DeFi as an asset class and a number of significant milestones completed,” said Bittrex Global’s CEO Tom Albright. “As the asset class matures and more institutional and professional investors look at the fundamentals, we are likely to see increased demand and higher trading volumes for DeFi in 2021.

We’re really excited about what we’re seeing in the space and want to see these DeFi projects grow and help them build stronger platforms through increased adoption. Offering free trading fees…

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Press Release