The Bitcoin Cash price is close to unchanged in Asian hours on Tuesday, as the Cryptocurrency market hits the pause button.
Bitcoin Cash (BCH) is trading at $430 (+0.00%), a 7-day increase of +2.2%, and down around 25% month-to-date. The cryptocurrency market, in general, is in limbo at the moment, as traders look to Bitcoin to provide clues on how to assess the bigger picture. Bitcoin (BTC) is currently changing hands at $46,800, down over $22,000 from last month’s all-time high. However, BTC is relatively stable despite macro concerns and attempting to form a base. As a result, Bitcoin Cash consolidates in the wide band of support around the 2021 lows.
The daily chart shows that BCH is trading around 10% above the December 4th multi-month low of $366. Previous dips towards $370 have proven the bottom in several deep corrections this year, leading to material gains afterwards. Therefore, as long as BCH remains above this months low, the chances of recovery are high.
However, if Bitcoin Cash breaks down below $366 on a closing basis, the outlook turned decidedly bearish. In that event, I would expect an extension towards the December 2020 lows of around $250, erasing this year’s gains.
For now, the outlook is neutral at best and will remain so as long as BCH is below the cluster of major Daily Moving Averages between $547-$567. Only successful clearance of the 200-DMA at $567, around 35% above the market, flips the outlook to bullish. On that basis, a drawn-out grind sideways looks likely for the foreseeable future.
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This post was last modified on Dec 21, 2021, 02:33 GMT 02:33