PROJECT NAME
BITCOIN CASH
Bitcoin cash is an open-source digital cash system that was created in 2017 as a result of the split in Bitcoin's community.
The split occurred due to questions concerning Bitcoin's scalability. This led to the creation of Bitcoin cash in other to continue the Bitcoin project as digital cash.
Unlike Bitcoin, Bitcoin cash focuses more on scalability in other to meet both present and future demands as electronic cash.
It tends to achieve this by increasing its block size from 1MB to 8MB meaning that it can handle more transactions per second and also maintain a very low fee when compared to Bitcoin.
Getting to October 2021, the Bitcoin cash block size increased to 32MB with Bitcoin still remaining at 1MB.
Transactions performed using Bitcoin cash are fully decentralized as there are no intermediaries therefore all transactions cannot be monitored by the government or any other centralized body. This makes it impossible for funds to be seized or frozen.
TOKENOMICS
| MARKET CAP | $6,899,014,651 |
|---|---|
| VOLUME | $3,909,057,715 |
| RANK | 25 |
| CIRCULATING SUPPLY | 19,017,531.25 BCH |
| MAX SUPPLY | 21,000,000 |
ANALYSIS
My technical analysis on BCH was carried out using the horizontal support and resistance strategy.
I carried out my analysis on BCH|USDT price chart on my real MT5 account.
Just as previously stated, the strategy was based on Support and Resistance areas which are key areas on the price chart.
I added an RSI Indicator in other for it to serve as a signal filter by identifying overbought and oversold regions on the price chart.
On a 1hr timeframe, I observed the price to be at a strong horizontal resistance area which signals a possible pullback or price reversal.
- Screenshot
After the above observations, I switched to a 15min time frame in other to identify a good entry.
I switched to a reduced timeframe because I am a scalper who trades with a small capital therefore, making an entry with a reduced time frame will help me in the proper management of my capital by reducing the size of my stop-loss.
On a 15mins time frame, I observed the price to also be at a strong resistance zone, this gave me confidence that there is a high possibility of price reversal.
I added my RSI indicator which I am using as a signal filter. The RSI indicator was now found to be very close to the overbought region which indicates there are already enough buyers in the market and a possibility of price reversing s very high.
Seeing that the RSI indicator is at the confluence with the signal provided by the fact that the current price is at a resistance level, I took a sell position.
- Screenshot
- EXIT
I took an exit position by observing the market structure which made me place my stop-loss just above the horizontal resistance level and my take-profit in consideration of my stop-loss in a ratio of 1:1
- Result
CONCLUSION
Trading has really been fun. Since the start of this trading competition, I usually spend my whole day on the chart while attending to other things.
My previous trade gave me a profit of $0.14 which is about 2.8 percent profit on my $5 capital. Today, I have made a profit of $0.39 which is about 7.6 percent.
Thanks @pelon53