Bitcoin Cash is approaching a bullish breakout above the $238 level of resistance after having consolidated above $200 for the past fortnight.
It spiked all the way to $250 yesterday evening before dropping back below the level of resistance during a market-wide sell-off.
A breakout above $238 would open the door for a 12.5% rally to the upside, with the next target coming in at $269, which was a level of support earlier this month and a level of resistance in January before the rally to $495.
It’s worth noting that the daily 50 EMA crossed the 200 EMA to the downside on March 18 to print a dreaded death cross.
An exponential moving average death cross typically precedes a major correction to the downside, in this case a downside target would be 2018’s low of $71.
For this to come into fruition Bitcoin, as well as the entire cryptocurrency market, would need to correct to December 2018 levels.
One saving grace for the cryptocurrency ecosystem is the upcoming block reward halving, which will see block rewards for miners slashed from 12.5BTC per block to 6.25BTC per block.
The previous halving came in 2016 just before the staggering bull run in 2017 that saw Bitcoin rise to $20,000 and Bitcoin Cash to $4,200.
From a short term perspective the key levels to look out for on the Bitcoin Cash chart are the $196 level of support and the $238 level of resistance.
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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.