Bitcoin Cash is back in its stagnant range of the past four months following a healthy 8.77% bounce from its June 27 low of $205.
On higher time frames it remains in a more bearish posture as a result of it trading well beneath the daily 200 moving average.
It has only traded above the 200MA for two months out of the past 10, which is indicative of a macro down trend.
Trade volume has also seen a significant reduction since volatility eroded in mid-March with around $1 billion being traded every 24-hours, a stark contrast to earlier this year when it regularly topped $10 billion and even $20 billion on March 3.
The apparent lack of interest, coupled with grim technicals in terms of negatively sloping moving averages as well as the relative strength index (RSI), indicates that Bitcoin Cash seems poised for a dramatic correction to the downside.
Potential targets to the downside have emerged at $147, $105 and $74, all of which are historical levels of support dating back to the 2018 bear market.
Much of Bitcoin Cash’s upcoming direction will also depend on Bitcoin, the currency it forked from in 2017, and its trajectory over the coming months.
Bitcoin is also range bound just above $9,000 but it is trading above a number of key moving averages and levels of support. If it can ignite a rally back above $10,000 and even $10,500 it could pave the way for an altcoin rally with the likes of Bitcoin Cash leading the way.
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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.