Bitcoin cash/BCH is a native coin of the Bitcoin cash network network which came to be as a result of bitcoin hard-fork in late 2017 and whose transaction takes place from one smart contract address to another thus is being considered to be a decentralized asset.The first smart contract address must pay a transaction fee in order for the transaction to be initiated to the second Bitcoin cash smart contract address by the miners running the network. The transaction fee is being shared to the miner who first initiate the transaction.The miners secure the Bitcoin cash network as well as validate transaction taking place on the network. This makes Bitcoin cash to be considered to be using the proof of work consensus. Developers can also be able to develop their dapps on the bitcoin cash network.Just like in Bitcoin and ethereum, bitcoin cash is considered to be well tradeable since it has a high liquidity. Because of this, it has a huge community of traders who are able to trade in both in an upward and downwards direction and be able to profit from it. Therefore, we can easily be able to analyze the weekly price analysis of Bitcoin cash based on traders behaviour as below;
Traders behaviour
Since Bitcoin cash has a huge community of traders trading it ,it can therefore be easily traded in both downwards and in an upwards direction . We can therefore say that when the Bitcoin cash market is moving in an upwards direction, that will be an indication that the number of Bitcoin cash traders selling a given amount of Bitcoin cash is more than the number of those buying a given amount of Bitcoin cash with their USDT balance. Because of this, the Bitcoin cash gains an upwards market direction so that it can profit with those few buyers and makes many sellers selling it to make some losses. On the other hand, if the market for Bitcoin cash is moving in a downwards direction, that will be an indication that the number of Bitcoin cash buyers is more than the number of Bitcoin cash sellers thus the market will move downwards with those few sellers selling it so than it can profit with them and makes those many buyers to make some losses. Therefore, since Bitcoin cash has been trading upwards since the beginning of this week, we can therefore analyze its weekly price analysis as below;
1. Bullish Bitcoin cash price analysis based on traders behaviour
In a bullish market, the Bitcoin cash will be moving in an upwards direction. Since the beginning of this week(2nd March 2020), the Bitcoin cash has been trending upwards. This upward movement has been due to more number of sellers selling their previously purchased Bitcoin cash than the few number of buyers buying a given amount of Bitcoin cash with their USDT balance. Because of this, the Bitcoin cash market in terms of USDT gains an upwards market pressure where it starts moving with few buyers so that it profits with them and make those many number of sellers make some losses in the Bitcoin cash market. The market rises as high as above $335 on Tuesday and went down to $330 on Wednesday having started trading at around $303 on Monday the same week. This analysis of Bitcoin cash is being indicated as from below;
The above is the Bitcoin cash market in terms of USDT. Two points are being indicated. There is point A and point B. Since the beginning of Monday this week, the market started trading at around $303 after which it rises all the way to above $335 on Tuesday and later dropped to $330 on Wednesday. As indicated above, the Bitcoin cash market can be seen to have been rising all the way to around $335 as stated above. This increase in price has been due to more number of sellers selling a given amount of Bitcoin cash as compared to few number of buyers buying a given amount of Bitcoin cash with their USDT balance. Because of this, the Bitcoin cash market gains an upward market pressure and moves upward with few number of buyers in order to profit with them and makes many number of sellers selling make some losses. The market then resist to continue moving upwards since the number of buyers again exceeds the number of sellers thus the Bitcoin cash slightly reverse and moves downward to point A at around $330 where it profits with few sellers and make some losses to many buyers. At point A, the number of sellers again exceeds the number of buyers thus causing the market to gain an upwards market pressure again and moves upward with few buyers at point B at around over $335. If the number of sellers will continue exceeding the number of buyers, then there is possibility of the Bitcoin cash to continue moving upwards until Monday next week. As a Bitcoin cash trader, if you previously purchased a given amount of Bitcoin cash and you are still holding, then you can either sell at current market price of around $335 or you can continue holding until the market reaches around $350 so you sell and walk away with more profit. As we always say, make sure to apply risk management whenever you purchase your Bitcoin because cryptocurrrency market is highly volatile
Summary
On Monday, March, the 2nd of 2020, the bitcoin cash price was trading at around $303. The market then started to rise all the way to $335. This increase in price has been due to more traders selling than those buying thus creating an upward market pressure where the market profit with buyers and makes many sellers make some loss. Therefore, we can say that when more buyers are buying than those selling bitcoin cash, the market will be moving downwards with those few sellers selling bitcoin cash so that it profits with them while when more sellers are selling than the number of buyers buying, then the market for bitcoin will be moving upwards with those few buyers so that it profits with them.
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I might be tired, but this just doesn't make sense to me. there must be more friends than supply, otherwise price wouldn't go up. are you saying traders are acting against the bigger picture?