In the latest bloodbath, Bitcoin Cash BCH appeared highly bearish weekly and now trades comfortably under the $500 level. It is amongst the biggest losers of the day with a 25% drop in the last 24 hours.
The last 48 hours have been a tumultuous period in the crypto space following a significant decrease in the global market cap.
In the middle of that, BCH has seen a back-to-back reduction with no signs of stopping yet. This came after marking a local peak at $730 last week. It currently testing March’s flipped resistance as support with a stronger surge towards the downside.
If the supply level continues to rise, last month’s low would be the next selling target to keep in mind in the near term. A double-bottom formation above that target low could bring the bulls back into the market.
Currently, there’s no room for buying on the daily chart. The crypto may regain some lost ground in the coming weeks, but as it stands now, the bears are taking charge. But looking at the recent daily candle pattern, the price is reaching an oversold region from a technical perspective.
We may see a small relief, which is capable of bringing an increase before resuming the dip. And if the bulls take advantage of that, we can expect strength in the market. For now, BCH looks weak.
BCH’s Key Levels To Watch
Advancing bearish, the next important support to keep in mind is $415 and the $348 level, marked as March’s low. Below it lies $300.
In case of a recovery, the $530 level is an immediate resistance to watch, followed by the $590 level that broke down yesterday. A push to $642 could bring a full recovery to $730 before breaking higher.
Key Resistance Levels: $530, $590, $642
Key Support Levels: $415, $348, $300
- Spot Price: $481
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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