Prepare for another Bitcoin Cash bull wave.
- Technicals first
We saw a massive reversal spike during the last push down on BCH.
This clearly speaks for the market and shows us Bitcoin Cash is not going further in that direction anytime soon.
Always remember, speaks first.
4H is ready to flip & is clearing moving out of the oversold territory.
We are in a , and i'm looking for either a straight breakout, or a top test followed by a straight breakout.
It'll be volatile when we breakout, and i believe we could be looking at a straight path to 2000 USD area.
BTCUSD has been behaving very irrational the past days, and i see a few reasons for this.
Since the difficulty change on the Bitcoin Core chain that increased by 18%, we are now seeing the right amount of blocks being mined, 1 Block / 10 minute.
This is resulting in fewer blocks than before the change and therefore increased mempool, hence strain on the network.
Currently the mempool is sitting at 230k unconfirmed transactions, which is the same as the all time high in May 2017.
It's clear that the mempool issues will be much worse this time around. We'll see a huge increase in fees to use the broken bitcoin core network, complaints will be heard in the media soon.
You can follow it yourself here: https://blockchain.info/unconfirmed-transactions
Lets think about what happened on Coinbase/GDAX when BTCUSD spiked from 17k to 19.6k in minutes.
This was a very clear situation of an illiquid market, causing euphoric buyers to waste thousands of dollars on slippage.
Why is GDAX illiquid ? Because all the coins are stuck in the mempool, waiting to be confirmed by a broken network...
It's impossible to sell your coins if they are stuck in the network. Now this is very dangerous if combined euphoric buying, as it'll lead to artifical price discovery without showing the real market supply, as the supply is stuck.
I believe we are about to witness the part 2 of the flippening, where the users discover the flaws of Bitcoin Core which leads to a huge escape to Bitcoin Cash .
Consider your risk involved in this trade.
Then I buy the dips in the morning when everyone is waking up.
Sooo many DIPS from BCash last month!