Bitcoin BTC
The Bitcoin Cash price joined the rest of cryptocurrencies in the tragic sell-off during the weekend. The BCH price is trading at $924, which is 25% below the year-to-date high of $1,214. The currency is now valued at more than $17 billion and is the 10th-biggest digital currency in the world.
Bitcoin Cash news: The BCH price dropped sharply because of profit taking as the impact of the Coinbase direct listing started to fade. With the news done, the market is now waiting for another catalyst.
The price also dropped because of the overall weakness in the crypto market. Indeed, currencies like Bitcoin, Ethereum, and Ripple all dropped. Historically, a drop of Bitcoin leads to contagion in the other currencies.
Still, this correction seems temporary considering that fears of inflation in the United States have waned slightly. Data released last week showed that the overall consumer price index (CPI) rose to 2.6% in March because of higher gasoline prices and the stimulus. Therefore, as these impacts starts to fade, inflation will keep falling. As such, the Fed will unlikely boost interest rates in the near term.
Turning to the daily chart, we see that the BCH price has retreated substantially in the past three days. However, we also see that the price has struggled to move below the important support at $778. It had struggled to move above this level a few weeks ago. Also, the price is still above the 25-day and 50-day moving averages and the two ascending trendlines.
Therefore, in my view, there is a possibility that the price will rebound this week. If this happens, we should not rule out a situation where bulls test the YTD high at $1,215. However, a drop below $778 will invalidate this trend.
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