Bitcoin cash is up by a percentage point in today’s trading session, extending yesterday’s 3.5 per cent. However, for much of this month, the cryptocurrency has been in a long-term bearish trend that has resulted in a 39 per cent price drop.
Like Bitcoin, Bitcoin Cash has struggled for weeks in the markets. Part of the reason for the current drop has been attributed to the tough economic factors such as the rising inflation and Fed interest hikes. There are also fears that a recession is looming causing investors to withdraw their investments from risky projects such as cryptocurrencies, which has affected Bitcoin Cash’s recovery.
The past few trading sessions have seen Bitcoin cash entering a bullish trend, after weeks of trading downwards. With today’s prices showing a percentage point in the markets and extending the previous day’s gain, there is a high likelihood that the prices are starting to recover.
Currently trading at $123, the prices recently set found a support level at $108 price level but failed to break to the downside after multiple. This resulted in the current bullish push to the upside. However, looking at the daily chart below, the new bullish trend looks not aggressive enough compared to the recent price action of the cryptocurrency.
Therefore, my Bitcoin cash price prediction still expects the bearish trend to continue. After the current push to the upside is over, my long-term Bitcoin Cash price prediction expects the prices to hit the $108 support level. There is also a high likelihood that, once that level is hit, the prices will break downwards and trade below the level.
However, should the current bullish move push past the $140 price level, then it will mean a price reversal. This is because, at that level, the prices will have broken the recent lower highs prices to the upside. It will also have negated the possibility that the move to the upside is a retracement and not a price reversal.
This post was last modified on Jun 20, 2022, 15:08 BST 15:08