I am feeling bullish about the Bitcoin BCH ecosystem. What about you?
I think that the whole market is already in a bull market and that at this moment market participants are just waiting for confirmation. Being right about a bull market will mean those investing right now could get all the rewards, but if you are wrong also all the losses.
The Dow Jones has not broken the long-term line in green with the number one (1) as a reference meaning that the price hasn't dropped to those levels for a long time and could be used as strong support in case of a downtrend. The bearish line in yellow and red with numbers two and three (2,3) indicate that in the mid-term we have started a bull trend and have used those lines as support and resistance in the past. We used line 1 as support and haven't dropped ever since and now we are testing the line in red and probably will use it as support in the future. The confirmation for a bull market will be once we reach an all-time high again but by that time those waiting for confirmation would had miss a lot of the gains.
For Bitcoin, the long-time support line is indicated in the line with green color and numbers 1 and 1.1. Line 1.1 will be the lowest price should go but probably that will never happen or only happen if something very wrong is discovered like USDT going under or something worst.
Line 2 in yellow was the previous trend line and since it is from the ATH breaking that trend line means to me the change in trend from bearish to bullish. To me since that moment the price bounced from it it indicated we were in a bull market, now it is just a matter of waiting for confirmation. Line 3 is just the trend line from the first top because the past bull trend had a double top so as such I think that may have some importance for the current bull trend. The line in purple with the number 3 is just a short-term resistance from the double top.
Once the line in purple is broken to the upside it will be used as a support because the next movement will be to break the blue line and use that as support to continue the bull trend. I must remind you at any moment the market could turn bearish but we sure are looking like the time for a bull market is about to start.
Bitcoin Cash hasn't moved that much and it has not broken any meaningful trendlines yet that is because BCH doesn't have as much demand as the stock market or Bitcoin, but as long as the other two remind bullish chances are Bitcoin Cash would try to break previous lines of support and resistances.
We now have CashTokens which will enable many features like leverage trading using the blockchain and without custodians, not to mention naked trading because you will need the actual asset to trade using BCHBulls, that means the days for centralized exchanges to manipulate the price could be getting closer to an end. CashTokens will enable DEXes to come into the picture and soon enough developers will be building on-chain tools for users and a fair market.
Bitcoin Cash is about to also go into the next halving, which means the yearly inflation rate will be under 1.1%, and if BCH suffers from market manipulation those manipulating will have a harder time doing so.
The fact that you will have on-chain features means Bitcoin Cash could reach a fair price and it will limit the damage centralized hostile exchanges could inflict on the asset, that is another reason to be bullish about Bitcoin Cash, you can forget all the charts above nothing is more bullish like an actual on-chain scalable utility.
That leaves only SmartBCH as the last piece of the puzzle, you may think sBCH is a rug and done for but one thing that SmartBCH has is that it is EVM compatible which means you can create bridges to other EVM networks does bring DeFi users into the Bitcoin Cash ecosystem. It is true the Smart Bitcoin Cash bridge is not online and we are working with a custodian solution backed by Binance-Peg Bitcoin Cash but last month CoinFlex sent its sBCH to the origin address that means now SmartBCH only needs around 70,000.00 BCH to back the sidechain one to one.
If you are bullish about Bitcoin Cash and CashTokens, you could also be bullish once SmartBCH gets a bridge or any other solution that brings the peg back without the need for a custodian like Binance. Now make no mistake SmartBCH has those problems which means you just need to wait and see the developments there and jump in once you see improvements.
