This is an supplement to the article this morning. Since this is a new crypto and has no history these are very preliminary projects, however, we have seen coins go up 1000% in months. Coins like ETH OMG NEO and LTC definitely come to mind. With even bitcoin.com posting an article (thank you @brrd for sharing that) detailing why Bitcoin Cash is truly the real bitcoin in line with Satoshi's vision for a decentralized currency, I think it would be foolish not to have this in our long term portfolio and looking to add in increments.
So what could cause this to happen? Well fundamentals in how we think. See all along I thought BTC' was the real bitcoin and it wasn't till I was on the radio this past weekend that one of the guests mentioned that Bitcoin Cash is really bitcoin and is more in line with the original white paper. As I stated this morning, I was speechless. This goes to show the power of branding for those that do not believe in investing in first to market, market penetration and good working platforms. This is crucial and you can see why.
Now this does not mean I am telling anyone to sell bitcoin and go all in on Bitcoin cash. I'm NOT! What I am saying is this may be a great opportunity to get in on a long term investment that has the potential to reap great rewards.
This brings us back to the fork and fundamentals.
Investors love spinoffs normally. But only when it's in the best interest of the shareholder or in this case the coin holder. There seems to be some disagreement among the developers and miners as to if this will even happen. Uncertainty creates fear! So it is possible to see a selloff of bitcoin and money flowing into bitcoin cash before even after the fork. But we are only guessing at probable outcomes. However, any issues, disagreement or anything negative for that matter could really effect the coin in a negative way and hard. Remember we have already priced in the free coin. So what sentiment will drive us higher? All I know is one day you can be ready to see $6200 and the next wanting to sell. This is how sentiment works and we have all felt it.
Fibonacci provides a guide and $2700 to $4000 is definitely on the radar. I personally think 4.618 is a level that is definitely obtainable. Do not believe in Fibonacci? Just look at how almost perfectly the extension lines are directly at the major lines of support and resistance.
So this leads me back to BCH' and why I think it's a better add here.
#1 It has been trading at it's low for a month now and has really found support around $300 so there is low risk to the downside. Bitcoin is at an all time high and is finding resistance.
#2 Risk Reward. On BCH' I'm risking $100 for the potential to make $3000. With BTC' I'm risking $1000 to make $1500 by the most bullish analysts. No brainer there!
#3 Even bitcoin.com came out with an article stating bitcoin cash is the real bitcoin chain continuation and not BTC'
#4 It caught on fire this morning while I was posting the original article. This is not your stellar coin or other alt-coin this is what many think is the original bitcoin chain.
It has flown much under the radar until the past 2 days, and as we know once people start jumping on the sky is the limit.
And to think had Lee from the radio show not casually mentioned it during the program I would have never even known until about a week or so from now. It's funny how what is so non trivial to a tech guy is huge for a trader/investor. I will be adding to this position in blocks.
AGAIN THIS IS NOT A BEEF OR SHORT AGAINST BTC' IT'S ABOUT BCH' FUNDAMENTALS AND RISK REWARD!! Now don't go all in here either. Add positions in 1/3-1/4 parts. It's better to cost average up while it's running then all in and it returns to earth.
So what could cause this to happen? Well fundamentals in how we think. See all along I thought BTC' was the real bitcoin and it wasn't till I was on the radio this past weekend that one of the guests mentioned that Bitcoin Cash is really bitcoin and is more in line with the original white paper. As I stated this morning, I was speechless. This goes to show the power of branding for those that do not believe in investing in first to market, market penetration and good working platforms. This is crucial and you can see why.
Now this does not mean I am telling anyone to sell bitcoin and go all in on Bitcoin cash. I'm NOT! What I am saying is this may be a great opportunity to get in on a long term investment that has the potential to reap great rewards.
This brings us back to the fork and fundamentals.
Investors love spinoffs normally. But only when it's in the best interest of the shareholder or in this case the coin holder. There seems to be some disagreement among the developers and miners as to if this will even happen. Uncertainty creates fear! So it is possible to see a selloff of bitcoin and money flowing into bitcoin cash before even after the fork. But we are only guessing at probable outcomes. However, any issues, disagreement or anything negative for that matter could really effect the coin in a negative way and hard. Remember we have already priced in the free coin. So what sentiment will drive us higher? All I know is one day you can be ready to see $6200 and the next wanting to sell. This is how sentiment works and we have all felt it.
Fibonacci provides a guide and $2700 to $4000 is definitely on the radar. I personally think 4.618 is a level that is definitely obtainable. Do not believe in Fibonacci? Just look at how almost perfectly the extension lines are directly at the major lines of support and resistance.
So this leads me back to BCH' and why I think it's a better add here.
#1 It has been trading at it's low for a month now and has really found support around $300 so there is low risk to the downside. Bitcoin is at an all time high and is finding resistance.
#2 Risk Reward. On BCH' I'm risking $100 for the potential to make $3000. With BTC' I'm risking $1000 to make $1500 by the most bullish analysts. No brainer there!
#3 Even bitcoin.com came out with an article stating bitcoin cash is the real bitcoin chain continuation and not BTC'
#4 It caught on fire this morning while I was posting the original article. This is not your stellar coin or other alt-coin this is what many think is the original bitcoin chain.
It has flown much under the radar until the past 2 days, and as we know once people start jumping on the sky is the limit.
And to think had Lee from the radio show not casually mentioned it during the program I would have never even known until about a week or so from now. It's funny how what is so non trivial to a tech guy is huge for a trader/investor. I will be adding to this position in blocks.
AGAIN THIS IS NOT A BEEF OR SHORT AGAINST BTC' IT'S ABOUT BCH' FUNDAMENTALS AND RISK REWARD!! Now don't go all in here either. Add positions in 1/3-1/4 parts. It's better to cost average up while it's running then all in and it returns to earth.
Comment:
For those of you learning about EW the correction pattern for BCH is about as clear and clean as it gets! 0.786 is critical to hold.
