Bitcoin Cash price held steady on Friday morning as market volatility eased. BCH is trading at $196, which is slightly above Thursday’s low of $180. This price is also substantially above last week’s low of $150, giving it a market cap of about $3.7 billion.
Bitcoin Cash has been relatively steady in the past few hours. This performance has coincided with the stabilization of the stock market after Wednesday’s crash. A closer look at the futures market shows that the Dow Jones, Nasdaq 100, and Russel 2000 indices have all risen by over 0.50%. This relief rally has happened after the indices declined by over 3% on Wednesday. In the past few months, stocks and digital coins have been moving in the same direction.
Bitcoin Cash is also reacting to the latest network upgrade in the ecosystem. The upgrade, which happened a few days ago, introduced new improvements in the back end. For example, it brought changes on how programmers wrote covenants or smart contracts that come up with rules on how funds are used in the network. This upgrade was decided using a Bitcoin Cash improvement proposal known as CHIPs.
A common question among BCH holders is on whether the coin has bottomed. The 4H chart shows that the coin declined to a low of $150 during last week’s major sell-off. It then bounced back and has been in a narrow range in the past few days. The coin has now formed what looks like a double-bottom pattern at $185.12. In price action analysis, this pattern is usually a bullish signal.
At the same time, the coin has moved below the descending trendline shown in blue and the 50-day moving average. Therefore, at this stage, the outlook of Bitcoin Cash is neutral. A bearish sign will be validated if the price moves below the support at $185. If this happens, the next key support level will be at $167. On the other hand, a move above the descending trendline will signal that bears have prevailed.
This post was last modified on May 20, 2022, 07:25 BST 07:25