Bitcoin Cash Price Weekly Analysis – BCH/USD in Downtrend
Key Points
bitcoin cash price remains in a downtrend and is currently below $1,000 against the US Dollar.
There is a major bearish trend line forming with resistance at $1,080 on the 4-hours chart of the BCH/USD pair (data feed from SimpleFX).
The pair is under bearish pressure and it may continue to move down towards $850-900 in the near term.
bitcoin cash price is in a bearish trend below $1,000 against the US Dollar. BCH/USD may find it hard to recover in the near term as long as it is below $1,100.
This past week since bitcoin cash price declined by more than $250 against the US Dollar. The price declined and traded below a few important support levels such as $1,200, $1,120 and $1,000. It even traded below the $960 support and traded as low as $905. Later, a recovery was initiated from the $905 swing low, but the recovery could not last long.
It traded above the 23.6% Fib retracement level of the last downside move from the $1,281 high to $905 low. However, the upside move was prevented by the $1,060 resistance. Moreover, there was no break above the 38.2% Fib retracement level of the last downside move from the $1,281 high to $905 low. On the upside, there is a forming with resistance at $1,080 on the 4-hours chart of the BCH/USD pair. Therefore, it seems like there are many hurdles on the upside near the $1,060 and $1,100 levels.
As long as the price is below the $1,100 level, it remains in a downtrend. It may retest the last swing low of $905 and it could even break it for a test of $850.
Looking at the technical indicators:
4-hours MACD – The MACD for BCH/USD is mostly moving in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is moving lower towards the 35 level.
Last week, startup company Lotos published its new project on aiming to create a decentralized religious community, supporting Buddhism and meditation, based on the Ethereum blockchain. According to the company’s , the community’s structure will be segmented into three parts: “an off-blockchain software platform” connecting the teachers and the students; “an internal economy supported by ERC20 tokens purchased by subscription fees and a central banker smart contract;” and “a website and database backend connected to the network with Swarm.”
The ERC20 compatible Karma (KRM) token will be used for on-platform exchanges and for crowdfunding the development of the platform. In addition to that, if users are able to grow the network, they will receive KRM as a reward.
The company believes they can create a blockchain-based community by combining science and religion in a radical way. There is even a statement from Tenzin Gyatso, the 14th Dalai Lama, included in the whitepaper:
“If scientific analysis were conclusively to demonstrate certain claims in Buddhism to be false… then we must accept the findings of science and abandon those claims.”
The Lotos community will be divided into two parts: students and teachers. Teachers will be either elected or assigned by the company’s owner. They offer religious services for the students including “facilitating student retention and progress,” creating content for the network and “recruiting” new students. The teachers will earn Karma tokens for their activities.
On the other hand, the students can freely register into the community, although, for a price. Lotos will allow students to join “temples” and classes but they have to pay KRM tokens to do so. Furthermore, there is “Karma-gated” content, which is only available if certain students pay a flat monthly subscription fee. Students can also earn KRM bonuses if they meditate, the more regular their activity is, the more bonuses they can earn, the whitepaper detailed.
When Lotos published its whitepaper in the Ethereum community on Reddit, they received hard criticism. Most of the users argue that Buddhism does not comply with materialism.
“I think ‘searching meaning beyond materialism’ and material ‘reward of spiritual practice’ don’t mix together very well. Just a thought,” one user wrote.
“Dude what you are doing is not Buddhism it’s Opportunism. Buddhism is about Simplicity, you are leading people into Complexity. Basically with your System people’s Incentive to meditate IS TO MAKE MONEY (NOT LIBERATION),” another user wrote on Reddit.
Others in the community suspect that the whole project, which is planning to launch an ICO, is a scam or some sort of money grab.
“Here’s the problem man: you are coming out with an ICO right at a time when the inherent corruption in ICOs is very much a public thing. I like the idea of a decentralized meditation app, I really do. However the fact that you are doing an ICO for ‘decentralized religion’ on something that isn’t non-profit ESPECIALLY BUDDHISM screams scam, and I believe it is one. If this is really your passion to help people around the world learn to meditate and become spiritual, you wouldn’t have a for-profit business model. Without a non-profit, you really don’t have a leg to stand on when it comes to spirituality,” a user named “PJBRed27” said about the project.
Surprisingly, it seems the negative opinions on the project made Lotos change some of the concepts of the project:
“We are changing direction a bit now:
Remove ICO mention from all marketing material / stop the crowd-fund campaign and work on building our community.
Start playing the slow and steady ‘snowball going down a mountain’ game.
Write blog posts at least once per week, each post highlights one of the community’s biggest concerns with our project (like why we need ERC20 tokens).
This also gives us time to find both blockchain and buddhist advisors.
Move away from ‘Buddhist’ to ‘Secular Meditation’.”
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