BTCUSD
Bitcoin cash price (BCHUSD) is down by more than 5% mostly because of risk aversion. Other digital currencies are also in the deep red, with Bitcoin, Ethereum, and Ripple prices falling by 3%, 8%, and 5%, respectively. This decline has pulled down the currency’s market cap to about $4 billion, which is lower than its year-to-date high of more than $18 billion.
Bitcoin cash, which was created in 2017 in a Bitcoin hard fork has had a rough time. Its price rose to an all-time high of $3,980 and then started falling. It eventually reached an all-time low of $74 in 2018. This year, the currency has dropped by about 2%, making it one of the worst performers among the major currencies. Indeed, BTC and ETH have climbed by more than 40% and 160% this year.
The weakness of Bitcoin cash is mostly because of low demand for the currency. For example, according to data by Bitinfocharts, Bitcoin cash worth more than $5.2 million has been transferred in the past 24 hours.
Bitcoin’s network handles about 918 transactions every hour. This pales in comparison to the amount of Bitcoin that is used every day. Similarly, in the financial markets the volume of BCH in the past 24 hours was worth about $1.4 billion. That is significantly lower than BTC’s volume of more than $29 billion.
The four-hour chart shows that Bitcoin cash price has been in a downward trend and is trading at the lowest level since September 26. The price is below the 25-day and 15-day moving averages while the volume remains below the 20-day moving average.
Therefore, at this stage, the path of least resistance is lower. As such, I suspect that bears will now target the next support at $200. On the flip side, a move above today’s high of $227 will invalidate this thesis.
