In 2019, we have taken a bullish stance on Bitcoin Cash (BCH), and the recent price action has validated our ideas. That said, our sanity has been questioned for having this view regardless of the price action.
This view has to be reevaluated after the negative news on BSV.
The creation of BSV had nothing to do with creating economic value. BSV was created as a byproduct of politics and childish bickering. In addition, BSV had no value proposition and solved no problem in the marketplace.
With the exposure of BSV as a “scam,” a powerful message has been sent by the crypto world. Hard forks for the sake of hard forks are unwelcome. They harm the ecosystem and won’t be tolerated going forward.
If this read is correct, it should “protect” major coins like Bitcoin (BTC) and Bitcoin Cash (BCH) from ego-driven hard forks. That would allow each of these coins to reach their full potential as fiat currencies decline as a result of policies that will likely be enacted after the U.S election in 2020.
Also, Bitcoin Cash (BCH) could be viable in the event a western government (like France) panics about capital flight and declares Bitcoin (BTC) illegal.
Looking at Bitcoin Cash (BCH) charts, there is minor support at $300 and major support at the top of a gap at $274 (Figure 1). If those points hold, it is theoretically possible for Bitcoin Cash (BCH) to move to the top of the hard fork gap at $384 (Figure 2).
Bottom Line: After the BSV event, it is logical to be skeptical of a bullish stance in Bitcoin Cash (BCH). In our view, the fact that Bitcoin Cash (BCH) did not crash after the BSV news speaks volumes. You don’t have to be long Bitcoin Cash (BCH), but we do think the recent resilience of Bitcoin Cash (BCH) implies the crypto bull market is for real and can continue all year.
Crypto is on the verge of taking its place as a leading macro asset. The Crypto.IQ Trading Desk is ready for what’s next and is getting our clients positioned accordingly.
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