Bitcoin splits, forms bearish outside day candle
|Bitcoin's underlying software code was split on Tuesday, generating a new clone called "Bitcoin Cash”. Futures of Bitcoin Cash [BCC] briefly jumped 50% before erasing the gains.
BTC/USD on Coinbase clocked a high of $2925 yesterday before falling to $2676 levels. The currency was last seen trading around $2712 levels. As per coinmarketcap.com, the total market capitalization of the crypto currencies now stands at 99.4 billion.
Tuesday's bitcoin split was planned by a few who disagreed with a more popular upgrade proposal called SegWit2x. Investors who held Bitcoins before the split now have access to an equal amount of Bitcoin Cash for free, which they will then be able to trade for fiat currencies - EUR and USD - or other digital tokens.
Moreover, profit taking is weighing over the BTC and BCC as explained here.
Bearish outside day candle
The daily chart shows a bearish outside day candle. A bearish follow through today would signal the rally from the $1758.20 [July 16 low] has topped out. Tuesday’s bearish candle also made sure the RSI fails to break above the descending trend line hurdle.
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