Bitcoin Cash price analysis: Head-and- shoulders pattern reversal looms
|- Bitcoin Cash hard for is “Nakamoto Consensus, as Satoshi created it” WallStreetTechnologist.
- Bitcoin Cash finds a support at $570; bulls have eyes on $600.
Bitcoin Cash was ballistic this week with significant gains that touched $640 to the upside. The bulls have found a new support catalyzed by the hard fork scheduled for November 15. Bitcoin Cash community is set to test the first Nakamoto consensus. As discussed by the WallStreetTechnologist:
“We are literally seeing the FIRST practical application of a mass decentralized consensus system (aka ‘vote’) that needs no administrator, no organization, no coordination, no public debate, no polling stations, nor any face to face meetings! It is Nakamoto Consensus, as Satoshi created it.”
Bitcoin Cash price technical picture
While the community is patiently waiting for the hard fork, Bitcoin Cash price has been trimming the gains from the monthly highs of $640. The crypto has dipped below $600 as it explores the levels towards $550. There has been a support formed at $570 and a bullish reaction has emanated following the formation of the second shoulder of the head-and-shoulders pattern. A reversal is expected to continue as the price gains ground towards $600. The downwards trend has come to a halt and the ongoing bullish trend will face resistance at the 50 SMA currently at $586.67 and $591.33 (100 SMA) on the 15-minutes timeframe chart.
Although the 50 SMA is still below the longer term 100 SMA, other indicators like the MACD (heading north) and the fast stochastic oscillator, buried dip in the overbought regions are viable buy signals. $600 is the breakout point that will revamp the trend supported by the hard fork in the coming week. Bitcoin Cash has in the past embarked on a sole recovery mission this year where it almost touched $1,800. The same is likely to happen in the next 8 weeks before the year ends.
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