Bitcoin Cash (BCH) has been one of the biggest beneficiaries of the recent pumps as BCH/USD has more than doubled in the past seven days. Why would a cryptocurrency like Bitcoin Cash (BCH) pump that much when nothing has changed? There are reports that claim that Bitcoin Cash (BCH) halvening could lead to major security issues in the network. Bitmain, one of the largest mining companies is having a serious problem getting rid of its Bitcoin Cash (BCH) holdings. So why then is the price pumping so hard? Well, to put it plainly, precisely for the reasons that we just mentioned. When people make a bad investment, they don’t cash out when the market is down. They cash out when the market is recovering or made to seem that it is recovering. If they can give it a lit bit of help, then that’s even better.
Recent developments regarding Bitmain’s IPO brought a lot of their dealings to attention and it is unbelievable to see how a company of such might and magnitude would make such massive blunders. Apparently, they have been very big on Bitcoin Cash (BCH) for the most part till they were not and then it was too late to do anything about it. Bitmain’s Ant Miner S17 is due to be released tomorrow and if the market was down, that would not be very good for business. Not to make any insinuations, but we have all seen so much of Bitmain and Bitcoin Cash (BCH) in the last six months. The infamous hashwar made it clear how little the majority of the people in this space care about morals or principles.
The weekly chart for BCH/BTC shows that Bitcoin Cash (BCH) has now topped out against Bitcoin (BTC) and has already closed the week below the 50 week exponential moving average. Even if the price were to retrace to the previous trend line support, its Stochastic RSI would still be nowhere close to the mean. For us to see a trend reversal in BCH/BTC, we would expect the Stochastic RSI to cool off which is not going to happen without a sharp pullback. It is important to note that stakeholders who have so much to lose could pull up any tricks to confuse investors short term. However, those who have their eyes on the big picture always wait for the price to come to them instead of FOMO’ing into the market.
As time goes by, Bitcoin (BTC) will be in a position to do the things that Bitcoin Cash (BCH) and Litecoin (LTC) currently take credit for. Upgrades like Lightning Network are helping make Bitcoin (BTC) more spendable and as time goes by spin off coins like Bitcoin Cash (BCH) may have a very hard time proving that they still have a use case. Bitcoin Cash (BCH) has been on a bullish spree the past few days and is now due for a sharp pullback that could see it fall to new lows against Bitcoin (BTC).