Bitcoin Cash price is still down compared to Bitcoin despite strong fundamentals

By Emma On Dec 21, 2019

Coin Metrics is grading each of the top 10 digital assets by market cap for their ‘auditability’, in which Bitcoin and its derivatives (such as Bitcoin Cash, Bitcoin SV, and Litecoin) achieved a maximum rating of A.

The company checks cryptocurrency assets by syncing a node to the network, extracting raw blockchain data and then rebuilding the ledger of the asset independently.

In terms of the operation of nodes, Bitcoin Cash achieves an A rating that makes it easy to synchronize, update and maintain.

Node Operation Ranking. Source: Coin Metrics

In terms of Ledger Reconstruction, Bitcoin Cash is also rated A which shows that it is easy to rebuild the ledger at any time.

Ledger Reconstruction Ranking. Source: Coin Metrics

Besides, Binance, the largest crypto exchange, announced yesterday that Binance Futures launched BCH / USDT perpetual contract with up to 75x leverage. Users were able to select between 1-75x leverage. Binance adjusted the fee structure of Binance Futures starting from 2019/12/20 08:00 AM (UTC).

Not only that, global fast-food giant Burger King is now cooperating with the payment service GoCrypto and starting to accept Bitcoin Cash.

That $4M Investment @BitcoinCom just lead in @eligmacom is really starting to pay off! @BurgerKing is now accepting #BitcoinCash with more locations to follow! https://t.co/QE5lpspQv3

— Roger Ver (@rogerkver) December 20, 2019

With these positive fundamentals, will the Bitcoin Cash price increase or not?

Bitcoin Cash analysis

Bitcoin Cash price has been falling since June 26. On September 25, it found support above $ 200. However, on December 16, the price broke below this support zone and at the time of writing, it was trading at $ 186.

Bitcoin Cash price is expected to start a short-term upward move towards the outlined resistance area. However, the direction of the long-term trend is still unclear.

Trader Crypto Krillin claims that the BCH price may see a slight rally at this level, but will eventually create new all-time lows until its true price is found.

$BCH

Might see some relief here, but I can’t wait to see this trash enter price discovery. pic.twitter.com/j9CSn2x41b

— Crypto Krillin ॐ (@LSDinmycoffee) December 18, 2019

BCH price has been trading in a range of 0.026 to 0.04 since July. Both resistance and support areas have been confirmed three times. Currently, the price is trading in the support area. This is very close to the all-time low of 0.024 in December 2018.

Source: Trading View

While the RSI has created bullish divergence since the beginning of the trading range, the upward sloping trendline has been recently broken and confirmed later. The daily outlook and the RSI, currently above 40, suggest that Bitcoin Cash price could continue to upward.

A short-term relief rally is very likely. The price of BCH will eventually reach the nearest resistance area at 0.028.

However, due to the absence of a trading model, it is not clear whether the price will break out of this area. Currently, it is highly likely that this is a confirmation of the area as resistance is followed by another round of discounts.

Disclaimer: This is not trading advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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