bitcoin BTCUSD
The Bitcoin Cash price is under intense pressure. BCH has dropped by more than 37% from its year-to-date high of $777, bringing its total market cap to more than $8.8 billion. This makes it the tenth-largest cryptocurrency in the world.
What’s happening: The Bitcoin Cash price is dropping as a reaction to what is happening with Bitcoin. The Bitcoin price has dropped from its all-time high of above $57,000 to the current $46,000. When BTC falls, other digital currencies tends to follow suit.
The recent performance of BTC is mostly because of a statement by Elon Musk, who warned that its price was getting expensive. Also, data from Coinbase shows that there have been increased outflows in the past few days as investors take profit. Still, some data shows that some institutions are still buying.
The daily chart shows that the BCH price has dropped sharply recently. On Tuesday, the price dropped to a low of $445, which is along the 100-day exponential moving average. Today, it is hovering slightly above this level also.
Further, the price remains above this EMA and the important ascending support at $368, which was the lowest level on January 27 and 28. It is also substantially higher than the ascending trendline that connects the lowest levels from September to December. This level also seems to be the neckline of the double top pattern.
Therefore, while the Bitcoin Cash price has fallen substantially, it is not yet in the danger zone. This will happen if it moves below the 100-day EMA, $368, and the ascending line at around $350.
