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.
評論
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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.
Quoting bitcoin .com as some if it's a reliable source is very misleading. Bitcoin .com is owned by Rober Ver. He is behind BCH with Jihan and friends. Dont add liquidity to this coin...
goldbug1
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@djx, Understood, and there are several 3rd party reviews of this, and whether it takes off or not is another thing, but any issues or divide in the fork could send BCH soaring!
Thank you for commenting!
ruraldisturbance
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@goldbug1 Hey GB, hope all is well. Something struck me about #1, particularly this "has really found support around $300" I question wether or not that is TRUE $300 support, my reasoning comes from Bitmain, are you aware that they recently stopped accepting ALL payments methods except for BCH for purchase of their ASIC miners?
Lets be honest, every miner wants to run at least a few ASIC miners and with the current prices on Bitmain's site for the S9 and L3+ I personally know people are converting BTC for BCH to buy ASICs from them, because Bitmain is forcing this, not because they want to invest in BCH. Your $300 support could be Bitmain forcing people to buy with BCH. The real support could be much lower. Food for thought buddy!
goldbug1
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@ruraldisturbance, Thank you rural. That is good food for thought. I'm in around $305 and $313 so when I was writing the article it was a minimal risk. Now it's a different story and I will be patient to add. It's long term but I could change if something extraordinary happens. But if you look at the chart that's where it was fluxing around prior to to the run to $900 and then it spiked to $300 and has just consolidated there. So I feel pretty comfortable in the position.
Thank you for sharing your thoughts, it's been very mixed feedback on BCH.
ruraldisturbance
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@goldbug1, Your position is probably pretty safe regardless of Bitmain honestly, I just think its a shady tactic to pump the price of BCH through forcing miners to buy/spend/sell it knowing that the majority of the bitcoin community is not really into it. Anytime you talk about Satoshi and his vision for Bitcoin expect controversy, I know you already know this ;)
I personally believe that Satoshi's vision for Bitcoin was majority network consensus and when he left Bitcoin to his peers he forfeited his personal vision for Bitcoin to them, so everyone thats going around defending his "Vison" are really just pushing their own agenda, IMO.
Currently the majority network consensus is that BTC (Segwit) is the real Bitcoin and until that consensus changes, BCH is not the "True Bitcoin" regardless of what anyone says, feels or thinks about the matter.
goldbug1
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@ruraldisturbance, Absolutely agree, but such a great risk to reward! I do not see any better out there at this time, especially if something goes wrong with the fork. BCH will benefit. Maybe not next week or next month but a year from now. This is why I went and added it to my long term portfolio.
Thanks Rural we have built quite a good trading tribe.
chorche
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@goldbug1,
Hi, I like your articles, where you are trying to educate people about theirs emotions. BUT...
As i can tell, you are acting on your emotions also, when you see crypto in long term going up (what is long term for you?) Month, year, 10 years ? Whats going on now, is just a buble and what I can say from your articles that your are not around for a long time. I see you jumping into somewhere around btc 100, eth 60-100 etc.
Can't post you any chart now i type that on my phone, but the long term trend is rly up, but with the real support around 300-400 for btc. Eth will go down around 10. Ltc 4-6. This bubble lives it's own life now, I am out of it and just waiting to pop. It might take a year, maybe more for a good entry point again. (And we might see some more pumps in short term)
If I am wrong, I am sorry. And I am also sorry for my english as it is not my native language.
@chorche, I'm long term 10 years plus, this is why I have a core portfolio of holdings I do not sell. I mention this all the time and it makes up 70% of my portfolio overall. Obviously as markets adjust and depending on how my trades go this will fluctuate. I did post several long term outlooks for Bitcoin. But markets must consolidate before moving higher. I didn't buy in August to short in November. I bought in August as the long term chart is crazy, similar to Cisco which I have posted many articles on comparing it to. 70k is definitely possible and I show a path there. But the market is in a correction and we must let it play out and not get the impulse to buy to early.
Thank you for your comment! I posted an update today and I would look at the french fries and gravy post as well.
ruraldisturbance
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@goldbug1, We sure have man! Keep up the good work, Im always excited to see your posts and this post makes me think twice about my view on BCH as a long term investment.