Bitcoin Cash was able to bust through its long-term descending trend line to signal that a reversal from the selloff is underway. Price has also moved past both dynamic inflection points at the moving averages as additional confirmation.
However, the 100 SMA is still below the longer-term 200 SMA to suggest that there’s still some bearish pressure left. This might pave the way for a quick retest of the broken trend line around $450-500 before Bitcoin Cash sustains the climb.
Stochastic is pointing up to show that buyers have the upper hand and could keep pushing for gains until overbought conditions are seen. This oscillator is nearing that level, though, so there could be a chance of profit-taking soon. Also, RSI is heading higher but also nearing overbought levels to reflect exhaustion among buyers.
Bitcoin mining giant Bitmain is reportedly gearing up for an IPO as it revealed its plans and profits for the first time. This Chinese company, founded by billionaires Jihan Wu and Micree Zhan, is said to have $12 billion valuation after its most recent funding round.
Based on their financial statements released this week, Bitmain made $742.7 million in profit during the first half of this year. After adjusting for costs and expenses, the company’s net profits were $48.6 million in 2015, $113.5 million in 2016, $952.5 million in 2017 and $952.1 million in Q2 this year. As of June 30 this year, Bitmain has made $2.8 billion in revenue, representing a ten-fold gain over the same time last year even as cryptocurrency prices have tumbled.
Keep in mind that Bitmain has publicly bet on Bitcoin Cash, although the exact figures have yet to be reported. With an ICO filing, this could mean tremendous gains for the company and its holdings of Bitcoin Cash, so understandably traders rushed to join in.
Images courtesy of TradingView
