Bitcoin Cash has devastatingly dipped below the $269 level of support after falling by 46% in the past 28 days.
It is now also trading below the daily 200 moving average for the first time since January, which is a clear indication of a transition into a bearish phase of the market.
Bitcoin Cash needs to close Wednesday’s daily candle above the $269 level to avoid a confirmed break down in price, which will likely cause a slump towards $238.
However, with cryptocurrencies being incredibly volatile by nature, it wouldn’t be unexpected for Bitcoin Cash to pick itself up with a rally back above the 200 MA as it attempts to regain bullish momentum.
A break above the 200 MA and the $288 level of resistance will open the theoretical floodgates for continuation to the upside, with price targets emerging at $328 and $340.
Much of the upcoming price action will depend on the direction of the world’s largest cryptocurrency by market cap – Bitcoin.
Bitcoin will undergo a block reward halving in May with several analysts suggesting that this will drive price to the upside.
The two previous halvings preceded a series of bull runs that drove Bitcoin to consecutive all-time highs, if this theory comes into fruition altcoins like Bitcoin Cash, Litecoin and Ethereum will begin to rally as traders diversify profits into more speculative assets.
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About Bitcoin Cash
Bitcoin Cash was born out of the idea of making Bitcoin more practical for small, day-to-day payments. In May 2017, Bitcoin payments took about four days unless a fee was paid, which was proportionately too large for small transactions. A change to the code was implemented and Bitcoin Cash was born on 1st August 2017.
More Bitcoin Cash news and information
If you want to find out more information about Bitcoin Cash or cryptocurrencies in general, then use the search box at the top of this page. Here’s an article to get you started:
As with any investment, it pays to do some homework before you part with your money. The prices of cryptocurrencies are volatile and go up and down quickly. This page is not recommending a particular currency or whether you should invest or not.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.