Bitcoin Cash, just like every other major cryptocurrency, has been facing some difficulties in the market and even if the bulls were able to build momentum and gather some intraday gains, they were unable to keep the steam pumping long enough to reverse the downside slope.
The market is back in favour of the bears and BCH has tested the $830 support level. To gain more, the price must cross the $870 resistance and the $900 resistance. The $900 resistance level is key.
The Bears are Taking the Lead
Currently, the entire cryptocurrency market is bearish and Bitcoin Cash isn’t any different from other cryptocurrencies that are facing bearish oppression. BCH is trading slightly above the $850 mark after it tested the $830 support level yesterday. This is rather discouraging especially since Bitcoin Cash broke the bearish barriers in mid-April and tested the $1,800 level.
The selling pressure was too much and the bears have wiped off most of the gains accumulated recently. From all indicators, further decline is going to come soon.
Regulatory ambiguity is one of the major problems affecting the cryptocurrency industry. The current decline which started last week has been made worse by the investigation being carried out on several exchanges by the CFTC.
The Bulls don’t have any fresh support to help them push the bears out. The bears are still pushing hard even if Bitcoin Cash is already in the oversold region. Currently, there is a weak bullish momentum on the price chart indicated by the narrowing gap of the MAs. The stochastic oscillator is on the oversold territory but it is moving upward slowly.
From the upside, the Bitcoin Cash price has to clear the $870 resistance and the key resistance at $900. If it is able to cross this level, the next breakout will be at $1000 followed by $1100 and higher levels accordingly. There is an immediate support at $830. If the beartrend gets to $800 other lower levels will be within reach.