With all of the attention on the movements in the bitcoin price, now could be the time to get your hands on BTC spinoff Bitcoin Cash, one trader says.
Brian Kelly, founder of Investment firm BKCM, tells CNBC the technical signs including a possible breakout are pointing to an opportunity in Bitcoin Cash (BCH). Investors apparently taking his advice, with the No. 4 cryptocurrency by market cap trading in the green today alongside other altcoins, up nearly 16% at the time of publication.
Kelly points to a trio of reasons why BCH is attractive at these levels, including the following –
- He says BCH is in the “Monty Python zone”, where like the movie it may have been “left for dead” and even “mostly dead” but despite being “absolutely crushed” it’s “not dead yet.”
- A “potential breakout” on the horizon
- Rising volume
Kelly used a long-term BCH chart from December 2017 till now to illustrate his point, where the $790 price level “was support” but has since “become resistance.” A breakout would indicate “higher moves.”
Meanwhile, based on a shorter time frame reflecting trading in BCH year to date, he points to a couple of “down moves” that have begun to form a “triangle” underpinned by strong volume.
“Those are the first things traders look at, that I look at, to say, something might be changing here,” Kelly said. “If we get that breakout, you’re looking at higher moves,” Kelly told CNBC.
Kelly has been making calls on the cryptocurrency market left and right, recently telling CNBC that the bitcoin price was likely to set a new record in 2018 and then it would be upward and onward from there. This plays into his call on BCH, because Kelly says “you’re going to need a continuation of the bitcoin rally.”
“Buy the Dip”
CCN recently reported on the rivalry between BTC and BCH traders, one that may have been responsible for the temporary suspension of the Twitter account with the handle @bitcoin. Kelly is bitcoin/altcoin-agnostic, as evidenced by his advice to “buy the dip” in bitcoin since the price has pulled back from its recent advance.
What was expected to be the start of bitcoin’s next bull run got interrupted after New York’s attorney general revealed he made an information request into more than a dozen cryptocurrency exchanges. But according to Kelly, it’s just “market action” on the heels of a “big run.”