Altcoins Daily Preview: BCH Rally Slowed by BTC.Top Capabilities, XLM Ceiling at 15 Cents
Latest Bitcoin Cash News
At spot prices, BCH is shaky and yet to recover after getting halved in mid-November. Its drastic fall in value was contagious and because of that wholesale sell-off, BTC and other altcoins prices dropped to new lows. But even in the mid of this disillusionment and double-digit losses, the team is firmly on course forging ahead as dictated by their roadmap. According to data from Marco Coino, a high concentration of brick and mortar and digital merchants accept BCH.
There are 377 locations in Europe, 134 stores in North America and 195 in the Pacific that accept peer to peer cryptocurrencies. Africa lags, however, there is steady growth in South Africa and Kenya mostly because of the appealing inherent properties associated with using Bitcoin Cash as payment—speed and reliability. Besides, adoption has been spurred by mainstream acceptance and with BitPay—a payment processor accepting crypto payment on behalf of their clients, the community is positive of what lies ahead.
Meanwhile, there is a risk that BTC.top, a Bitcoin Cash mining pool, can attack the network after its hash rate surged to 679 Peta-Hash per second at some point today. With that computational strength, the mining pool had control of 50.2 percent of the total hash rate and may or may have not double spent transactions.
If it did then Bitcoin Cash won’t be the first coin forking off the Bitcoin core to experience a 51 percent attack. Bitcoin Gold suffered a similar fate in Q3 2018 when hackers made away with $18 million worth of BTG tokens after double spending transactions for several days.
Bitcoin Cash (BCH) Price Analysis
In the daily chart, BCH is steady and despite the risk of BTC.top going awol, we maintain a bright outlook. This positivity is anchored on price surge between Dec 17-20 when prices more than double after bottoming up from lows of $71 on Dec 16.
Although this printed out in the midst of a deep bear trend instigated by the hash rate war after Nov 15 hard fork, the surest way of ensuring that this expansion is not a retest before trend resumption is if there is a high-volume break and close above $230.
Ideal average behind the up-thrust should exceed Dec 18 of 290k versus 71k when prices added $90 in a day. On the flip side, losses below $150—our immediate support could see BCH tumble to $100 in days ahead.
Our BCH/USD trade plan is as follows:
Stellar Lumens (XLM) Price Analysis
XLM may command a market cap of $2.2 billion but coin prices have been erratic to say the least. XLM/USD is trading within a bear breakout pattern after sinking below 15 cents in early December. Though the recovery of BTC could lift this coin unless of course there are separate fundamentals like Facebook forging a partnership with Stellar, the path of least resistance is southwards.
This is likely to print out especially if bulls fail to muster enough momentum propelling prices above Dec 24 highs of 15 cents. Instead, if prices sink below Dec 28 lows of 11 cents, XLM may sink to 8 cents. On the bright side, gains above 15 cents would open up doors for 20 cents and later 30 cents. In that case, our XLM/USD trade plan will be as follows:
Buy: 15 cents—breakout trade
Stop: 13 Cents
Target: 20 Cents
All Charts Courtesy of Trading View—BitFinex and Bittrex data
This is not Investment Advice. Do your own Research.