Bitcoin Cash: Weekly RSI Oversold

Purchasing power declines when a currency losses its valuation against other currencies. The price in USD matters, and it is mistaken to think otherwise.

Now that the read and noise.cash rewards are lower users of these platforms should finally realize price matters and do more for Bitcoin Cash. If BCH drops lower, as some no-coiners want, rewards will be even lower.

Even for fiat to replace another fiat, it takes decades. The euro was under development for decades, and the initial stage contained a transition period of one year where both the euro and national fiat of the European counterparts worked in parallel.

The Price Declined Further since May - RSI Oversold

(source)

Claiming that consumer goods should be priced in BCH is acceptable as a proposal. Yet even if BCH merchants proceed in valuating their goods in BCH, eventually they will cost higher in BCH, as the BCH price drops in terms of USD, Euro, or other fiat drops. The standard is the dollar, and we count purchasing power according to the BCH valuation in the dollar.

Bitcoin Cash has a limited number of users and investors at this stage. Yet this number is higher than the actual users of almost every other blockchain, perhaps except Bitcoin (BTC) and Ethereum.

Investors in crypto exchanges are not a fanbase. They temporarily bought all the VC vaporware as it was marketed heavily.

Thinking that a price decline of BCH will create better odds for Bitcoin Cash to succeed is an absurd approach. Investors are also needed and BCH should achieve a higher price level that will be sustainable.

Like it or not dollar is the acceptable standard. Obviously, some that consider being supporters of Bitcoin Cash don't realize when we make a purchase using Bitcoin Cash, the price is still valuated in fiat.

Considering the price, the Coinbase chart is difficult to explain when considering fundamentals and the state of competition:

BCH weekly Chart (Coinbase):

RSI weekly reached again an oversold territory. Yet, this doesn't mean the pain is over. RSI is a decent indicator for the weekly, but it can also be invalidated.

However, traders usually make their bets at this exact stage:

BCH touched 30 RSI, so selling or shorting at this point is not a correct trade most of the time.

However, BTC is driving the market at this stage. RSI for BTC is also at a historic low level, similar to March 2020.

It could be an indicator of imminent bounce at this point, yet, there are a few more points to consider.

The FED announcement of interest rates rising caused the market to crash by 1 trillion USD.

Certainly part of the decline can be attributed to the Terra Luna Ponzi scheme that some tried to revive with Terra 2.0, even a few top exchanges supported it! If anything, this is an indicator of who we are dealing with and why trusting exchanges with our private keys demands a huge leap of faith.

Lastly, more threats in the market exist, with shady financial elements supporting each other until they all collapse. The centralized lending services, CeFi, like Celsius, Nexo, BlockFi, etc, together with exchanges like Binance are fractionalizing crypto reserves for their customers within multiple dubious money-siphoning financial products.

For the last two years the fiat money moving in crypto, exited in bank accounts of just a few individuals. The crypto exchanges profited more than any BTC whale.

Yet, there was another event that marked the last bull run. Ethereum outperformed once again and created a new force in the crypto market as Ethereum whales are now sitting on overwhelming resources.

Conclusion - Is This The Bottom?

It is difficult to assume the bottom is in.

The sentiment hasn't changed and while the Bitcoin Cash community is overperforming with remarkable achievements in development and adoption, the still price keeps dropping.

Still, I do not expect to drop too much from this point. RSI is an indicator that works better on the weekly, so it can take a while before it bottoms and the price bounces.

Meanwhile, a few no-coiners posing as contrarians and at the same time focused on a financial ideology that makes no sense as eventually, it impoverishes the consumer.

Infiltrators used by the banking establishment are plenty in crypto.

Too easy to spot them, but not perhaps for everyone, it takes some experience with the sector to recognize them.

They are out there to spread negativity and create additional confusion, covering their extraordinary claims under the veil of contrarianism.

Recommending caution as bankers posing as P2P cash and BCH fans infiltrated (again) this (and more) communities, as they did with Bitcoin (BTC) in the past.
They will call for regulations, they will tell you BCH is worth nothing, and they will undermine all developments and adoption according to their goals.

• Cover Photo by " geralt " on Pixabay (modified)

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