Bitcoin Cash: Hodl and wait for bigger moves.

Hi traders, here’s my game plan regarding the Bitcoin Cash situation.

Hurray! The network survived the fork and Bitcoin (BTC) is now trading along side its baby brother Bitcoin Cash (BCH/BCC) which unsurprisingly already ranks in 3rd position in term of market-cap, just behind Ethereum.

Value-wise, Bitcoin Cash currently trades at around $384 on Kraken (market mover for the fiat/BCH market) and around 0.18 BTC on BITTREX, which is moving the market for the BTC/BCC pair at the time of writing.

So what’s the plan?

Well, I personally rely on technical analysis for my trades and right now technical analysis on the Bcash charts is very difficult for the following reasons:

• I suspect that most of the Bcash is still sitting on hardware wallets and will remain there for a while until it becomes clear that making transaction on the Bcash chain is safe;

• Bcash markets are still very much in price discovery (markets are still in the process of agreeing on a price) and a lot of major exchanges like Bitfinex (or even Poloniex) haven’t yet allowed their users to trade;

• Most exchanges haven't yet allowed Bcash deposits;

• As a consequence, the current volume of trade, while decent right now, is still only a fraction of what we could see in the next few days or weeks.

Because of the uncertainty in both TA and network security and the potential for bigger moves once more volume starts coming in, I have decided to play the card of patience.

I do have a plan, though:

• Both my Bcash and my legacy Bitcoin which were stored on my LEDGER before the fork will stay on my LEDGER until I am absolutely sure that it is safe to transact on each chain. Once the Bcash chain is secure, I’ll probably send my Bcash to Kraken (or whichever exchange moves the market at that point) and keep it there for future trades;

• As for my Bcash which is currently sitting on exchanges (I left some Bitcoin on Bitfinex and Bittrex before the fork), I will not sell it unless I see some ridiculous price action upwards (if it goes to $1000 or above). Otherwise, I am going to patiently wait for Bcash to get out of price discovery because right now the price action is too messy to trade; I mean... what can you do with a chart like this:

• I am also keeping some fiat money on Kraken just in case we see some major selloff once more Bcash start hitting the exchanges. I would definitely buy more Bcash if it drops under $100-$150 but I sure not going to buy at current prices.

What about you dear follower, what is your plan?

#cryptocurrency #bitcoin #bcc

Trade safe guys, and please follow and upvote if you like the content.

Dan @tradealert