Market Overview

Bitcoin Cash Price Analysis: Network Stabilizes; BCH/USD Breaks Bear Flag Pattern

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  • Bitcoin Cash investors received an early Christmas gift with the fueled and incredible recovery.
  • Bitcoin Cash could close 2018 trading below $200.

Bitcoin Cash has proved to the investors that it has the ability to reverse a downtrend significantly. This comes after the digital asset corrected from the lows formed around $73.36 to highs around $229.65 in less than one week.

The upside retracement is likely due to the stability the network is nurturing following the hard fork on November 15. The upgrade saw Bitcoin Cash chain split into two separate chains. Bitcoin ABC assumed the symbol BCH while the other chain, Bitcoin SV in the leadership of the former Bitcoin Cash developer, Craig Wright. The hash war and the trade wars between the chains has cooled down as both networks focus on development.

In the meantime, Bitcoin Cash is trading at $165 following a correction from the monthly high. Bitcoin Cash investors received an early Christmas gift with the fueled and incredible recovery. However, as the players in the mark took time to spend Christmas away from the digital assets, Bitcoin Cash slashed the gains accrued first breaking below the rising trendline and later forming a bearish flag pattern.

Consequently, the bears grip continued the price broke beneath the above mention pattern, see chart. At the moment, the 50 Simple Moving Average is limiting gains at169.67. Similarly, further correction to the upside will face high seller concentration at $180 (the 100 SMA). BCH/USD needs to correct above the 100 SMA for a breakout above $200. On the other hand, the technical indicators on the chart show reduced buyer activity, which means that Bitcoin Cash could close 2018 trading below $200. On matters concerning support zones, the first one is at $160, the second at $150 (this week’s low) and a stronger support highlighted by the 38.2% Fib retracement level as observed on the chart.

BCH/USD 60’chart

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Posted-In: Bitcoin FXStreetCryptocurrency Fintech News Forex Global Markets

 

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