The Bitcoin Cash price has recovered from last weeks sell-off. However, as long as BCH remains below $530, the bears are still in charge.
Bitcoin Cash is trading at $483.47,higher by $5.45 (+1.14%).
The 12th ranked cryptocurrency has a current market cap of just over $9 billion. This is only slightly ahead of Litecoin’s $8.89 billion value and Solana with $8.8 billion.
Since coming to life in 2017, due to a hard fork from Bitcoin, BCH has underperformed its big cousin. This is evident today as the coin has struggled to emulate BTC’s, at the time of writing, 5% rally.
Furthermore, whilst Bitcoin is down around 47% from its May all-time-high, the Bitcoin Cash price has lost 77% of its value in the same time.
Although there are some similarities, after bouncing from their respective major support levels, both continue to recover from last week’s collapse. Similarly, both Bitcoin and Bitcoin Cash are weighed down by significant trend lines.
The daily chart shows that Bitcoin Cash bounced from the $382 support during the sell-off early last week. Furthermore, BCH has reclaimed the previous support at $439 and is approaching the next big resistance level.
A descending trend line, which starts at the top of the May 20th relief rally, is present at $530. How BCH performs here will dictate if the recent bounce has any real momentum.
The Relative Strength Index is turning higher, signalling the momentum is turning less bearish. However, the 50-day moving average has completed a bearish crossover of the 100-day, and this negative development more than offsets any improvement in the RSI.
If the Bitcoin Cash price manages to breach the $530 resistance, technically speaking, it opens the door to $600. This relies on big cousin Bitcoin doing the heavy lifting. Only continued strength in the market leader would enable BCH to embark on a continued rally.
Furthermore, as long as the price remains below this descending trend line, the path of least resistance is lower.
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