As previously stated in Coin Rivet’s analysis Bitcoin Cash continues to consolidate beneath the $238 level of resistance after failing to break above the daily 200 moving average on April 8.
Until it can break above the 200MA it remains in a bearish formation after failing to establish a high since the breakdown in price on March 12.
The daily relative strength index (RSI) also reiterates the recent period of consolidation, with it being in an indecisive zone at 47.22 while a bullish break would come above 60.86.
Trade volume has also dropped off significantly since early March, with $3.4 billion being traded today as opposed to $29.6 billion on March 4.
The apparent lack of interest in trading Bitcoin Cash could well be the catalyst for a potential move to the downside, with targets emerging at $201, 176 and $142.
However, although Bitcoin Cash supporters won’t want to believe it, the upcoming block reward halving on the original Bitcoin’s chain could drive price to the upside in the later stages of 2020.
Rewards for miners will be slashed from 12.5BTC per block to 6.25BTC per block in early May, with theories predicting that it will ignite another cryptocurrency bull run.
The theory makes sense as a reduction in supply will always drive prices higher if there is sufficient demand, but there is a risk of miner capitulation if it goes the other way.
With so many spectators waiting on the sidelines hoping that the halving will reverse the coronavirus woes, it could be a recipe for disaster with the event actually being priced in months ago, which will lead to a severe correction.
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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
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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.
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