The Bitcoin cash price is attempting to rebound after staging a major decline in the past few days. The BCH coin is trading at $670, which is about 225 above the lowest level this week. Still, the coin is about 16% below the highest level this week and about 60% below the year-to-date high. It has a total market capitalization of more than $12 billion.
After staging an impressive recovery since July, the Bitcoin Cash price retreated sharply on Tuesday as interest in cryptocurrencies waned. The decline was mostly because investors were selling the news after El Salvador moved ahead with its plans to make Bitcoin its legal tender.
Therefore, since momentum was building before this event, investors sold on the news. This is a popular situation which is known as buying the rumours and selling the news.
The sell-off accelerated after a tussle between Coinbase and the Securities and Exchange Commission (SEC) emerged. The tussle revolves around a yield-earning service that Coinbase wants to introduce.
The SEC insists that this product is a form of investment that it should oversee. While Bitcoin and Bitcoin Cash are not involved, the news tempered expectations about the industry. So, what next for BCH?
The daily chart presents an interesting view of Bitcoin Cash. The chart shows that the coin jumped to a high of $802 this week. This was an important level because it was also the highest level on May 27. The chart also shows that the coin declined to $551 during the cryptocurrency sell-off. Again, this was a notable level since it was the lowest level on June 10 and 11.
Bitcoin Cash has now rebounded and is attempting to retest its highest level this week. It is also attempting to move above the 25-day moving average. Therefore, the coin will likely keep rising as bulls attempt to move above the resistance at $800. On the flip side, a drop below $600 will invalidate the bullish view.