Tuesday August 8th, 2017 1312 GMT - Bitcoin is currently sitting near the $3,440 level across the exchanges, working it's way up from the $3,000 psychological wall that was causing resistance in prior weeks trading leading up to the Bitcoin Cash fork.
RSI is sitting in overbought territory at 75, although Bitcoin has a tendency to remain seriously bullish and been as high as 90 before returning in the past. A downward slope in RSI could be seen as growing weakness in the uptrend.
Possibly Bitcoin Cash has bottomed near a $200 floor, and begun to turn around hitting highs in to the $300-400 range. Over coming weeks we will see how miner sentiment can be effected due to the reward algorithm being implemented by Bitcoin Cash, this will be especially telling in regards to the difficulty level and how Bitcoins 2016 block limit effects the network speed in comparison with Bitcoin Cash variable difficulty setting which is set based upon mining power. While there are less miners on the network, the difficulty reduces thus making mining more attractive.
There is a finite pool of miners and a serious dependency on Bitcoins ability to perform. If the scaling issues of a high demand, slow network come into play, possibly intensified by competition of a more lucrative mining option with Bitcoin Cash, maybe this bull run will start to fade and turn quiet inverse.
With CPI data and a couple FOMC meetings this week, of the back of the Dollar tanking to fresh year lows combined with a 15 week loosing streak. A re-adjustment to the Fed's balance sheet, and monetary policy could possibly move the DXY upwards. although it is looking very bleak indeed - in these times when limits are stretched we can expect to see potentially levels snap back as mean reversal takes effect.
BTC Channel Mean $3,000 / Resistance $3,500
BCH Resistance $400 / Support $200
