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Bitcoin

BCH and BSV Face Halvings This Week, But Traders Shouldn’t Be Too Optimistic About Spread Effect: Crypto Market Daily

2020.04.08 OKEx

Wednesday, April 8: Most top cryptocurrency markets are seeing a mild correction today, except Bitcoin Cash (BCH) and Bitcoin SV (BSV). Both of the Bitcoin (BTC) hard forks are seeing solid 24-hour growth in anticipation of their halvings, set to occur this week. 

Bitcoin (BTC) — whose own halving is set to take place in May — is down just over one percent, trading around $7,300. 

BTC enters pullback trend

1H chart BTC/USD Perpetual Swap data. Source: OKEx.com

Subject to strong resistance above $7,500, BTC has entered a pullback trend. The leading cryptocurrency saw a slight consolidation at $7,450 before stabilizing above $7,000 yesterday. Currently, the coin is trading just below $7,300. 

OKEx’s market analysis team believes that after the trend exceeded $7,000, BTC bulls have been gradually shrinking. Therefore the stagnation around $7,500 is in line with expectations. 

Although this week both Bitcoin forks Bitcoin Cash and Bitcoin SV will experience halvings, this fact hasn’t actually benefited Bitcoin visibly, at least not yet. The rebound in the morning failed to reach a new high, and there was no clear sign of significant increase in volume.

Investors need to pay attention to the continued support above $7,000 in the short term and the kinetic energy when creating a new high.

Stagnation around $7K still posssible

6H chart BTC/USD Perpetual Swap data. Source: OKEx.com

Bitcoin’s 6H chart above is showing that the trend gained support and rebounded at $7,050. This means that most of the loss positions below $7,000 have already been lifted out of the market to a certain extent. 

The plunge in mid-March has been almost digested, but the possibility of the continued oscillation again and again around $7,000 cannot be ruled out.

Investors should note that mining difficulty has increased. This may lead some miners to sell their BTC to save profits. Therefore, it’s important to be aware of the risk of a dump in the next few days.

Resistance and support levels

  • Short-term resistance: $7,400       
  • Medium-term resistance: $7,500
  • Short-term support: $7,250
  • Medium-term support: $7,050

BCH rises as halving approaches today

1H BCH/USD Perpetual Swap data. Source: OKEx.com

BCH — whose block reward is set to halve in less than an hour — grew by more than 6 percent in the past 24 hours. Given the imminent halving event it is not surprising that the majority funds have pushed the price up in the short-term.

However, looking at the trend on the chart above, BCH has been blocked by the upper edge of the previous resistance area of $280. If that position cannot be broken in the short-term, the effect of the halving may end there. 

Otherwise, if it can break through $280 and stabilize, returning to $300 will become highly possible. Investors should focus on the first slight support level around $270.  If the pullback or consolidation can still stabilize on it, it’s possible that the price will pump to a new high above $280 with relatively good volume.

Resistance and support levels

  • Short-term resistance: $280   
  • Medium-term resistance: $300
  • Short-term support: $272          
  • Medium-term support: $262

BSV sees notable growth, but is approaching strong resistance

1H BSV/USD Perpetual Swap data. Source: OKEx.com

BSV will also experience its halving this week — estimated to occur in less than two days. Although BSV has seen the most 24-hour growth of all top 50 coins — up almost 14 percent today — the short-term heavy bullish volume is coming to an end as it has already peaked. The upper space between $220-$226 is a strong resistance area. 

If the price can continue to be supported by $204, there is still the possibility of creating a new high in the future market. Conversely, it may continue to fall below $200 and find a second support around $186.

During the past couple of hours, around 5 p.m. HKT, the price closed with an inverted hammer pattern. This means that selling pressure is pushing heavily upwards currently. Therefore it’s better not to enter a long position in the short-term, wait until the price has stabilized, then make the decision.

Resistance and support levels

  • Short-term resistance: $225
  • Medium-term resistance: $235
  • Short-term support: $204    
  • Medium-term support: $188


Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.


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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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