Bitcoin Cash has had huge increases this week, and investors and traders do not have to look far for the catalyst. Bitmain, well-known as the dominant force in cryptocurrency mining, has filed for an IPO. Some speculate it will be the largest IPO in history. Bitmain is a heavy advocate and investor in the Bitcoin Cash project.
Bitcoin Cash was forked from Bitcoin in 2017 and has been surrounded in controversy since. Many in the cryptocurrency community label it a scam and lash out about the founders of the project calling the project “Bitcoin” while calling the original Bitcoin “Bitcoin Core.” The price surged 20% on news of the filing. Volume is significantly above 20-period average daily volume showing significant strength behind the move. The MACD is approaching a centerline crossover to the upside, a bullish signal.
A bearish divergence is currently taking place on the hourly chart for Bitcoin Cash. The price is forming higher highs while the RSI is forming lower highs. This shows that the buying pressure is falling off while price continues to rise and could indicate a pullback.
The last few hourly candles have been recording losses on significant volume but whether are more significant pullback is to take place is questionable. Although divergences are strong indicators, the momentum is strong with the buyers at present, and more buyers may rush into Bitcoin Cash to try and capitalize on the news of the Bitmain IPO.
- Bitcoin Cash surges on news of Bitmain IPO.
- Bitmain is a significant advocate and investor in Bitcoin Cash.
- Bearish divergence occurring on the hourly chart.
- Momentum is strong with the buyers at present.
Bitcoin Cash Price Surges Over 20% After Bitmain Files for IPO was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.