Bitcoin Cash price drops another 10%, wave farewell to $1,000
BCH/USD bears are merciless
Crypto fans try to stop the panic, to no avail so far
Bitcoin Cash price broke below $1,000 threshold yesterday, and now it is swiftly moving towards $750.00. Being one of the largest digital currencies with the market capitalization above $13B, it feels the pain inflicted on the crypto universe by the global regulators.
Virtual currency markets have turned into a desperate place as a steady flow of bad news caused a widespread cryptocurrency price crash. In addition to the regulatory crackdown, coins are getting harder to buy as major banks ban purchasing crypto with credit cards. These measures will affect about 8 million credit card holders of J.P. Morgan Chase, Bank of America, Citigroup, and Lloyds Banking Group.
The total cryptocurrency capitalization peaked at $814B on January 7, this year; now it is slightly less than $283B. It means that more than 65% of value has been wiped out from the market in a month, though some hardcore believers see it as a rebalancing process. Thus, John McAfee, a well-known cryptocurrency proponent, says that there is no reason to panic
«Please God people – get a perspective about the market! The price of Bitcoin today is still higher than it was just three months ago! In a long term view, Bitcoin is still climbing. Forget about these short term ups and downs. If you are a short term investor, you need to get real» – he writes on his Twitter account.
Anyway, people sell to continue pressing the panic button. BCH/USD is currently trading at $786.47, off the intraday low at $758.09. Once the $750.00 support is broken, the coin may crash towards $664.60, which is the lowest level since November 10, 2017. The nearest resistance comes at $800.00 and followed by $887.00 (21-SMA on hourly chart).
We expected Bitcoin Cash to pull back to the downtrend line, but it turned down from $1,316.07 levels.
BCH/USDToday, it has broken below the $1,000 support. Now, it is likely to fall to the next critical support of $854.3135.
We do not find any signs of a bottom on the BCH/USD pair barring the fact that the RSI is close to entering into the oversold territory. Despite this, we want to see some buying emerge before making any trade on it.
According to Fxstreet, Bitcoin Cash price back to square one
Bitcoin Cash dropped by 14%
Bitcoin Cash is heading towards the $1,000 mark
SEC chairman to appear before the U.S. Senate Committee
Bitcoin Cash is heading fast towards the $1000 level. The cryptocurrency that was birthed in August 2017 following a hard fork on Bitcoin Classic has been dropping tremendously in its price. BCH reached an all-time high of $3,700 on 12th December 2017. It is now trading at $1,021.
Bitcoin Cash has dropped by 14% since the opening of the trading session on Sunday 4th February 2017. The currency has been a downward trend and has failed to push past the $1,300 resistant level. The bearish trend continued on Monday morning leading to another resistant level of $1,220.
The cryptocurrency market has not fully recovered from last week’s series of news on regulations from various governments including China, South Korea, and India among others. The Indian government went ahead to ban the use of all cryptocurrencies in the country. The country will, however, be looking for ways to embrace the blockchain technology. This week has started with news of one of Britain’s largest bank, Lloyds bank banning the use of its credit cards to buy cryptocurrencies due to fears of losses that could occur in the event cryptocurrencies do not regain their value.
The cryptocurrency market is also expecting the chairman to the Security Exchange Commission (SEC), Tom Clayton to appear before the U.S. Senate Committee on banking, housing, and urban affairs on Tuesday 6th February 2017. The hearing is titled; virtual currencies. Mr. Clayton will be talking about the regulatory role of SEC and the Commodity Futures Trading Commission (CFTC). The meeting is going to give the much awaited regulatory clarity so that institutions will be able to know what they can do what they need to avoid in the cryptocurrency market.
Bitcoin cash price failed to move above the $1,300 level and started a downside move against the US Dollar.
There is a crucial bearish trend line forming with resistance at $1,220 on the hourly chart of BCH/USD (data feed from SimpleFX).
The pair is currently heading towards the $1,050 support area and it remains at a risk of more declines.
Bitcoin cash price faced a lot of sellers against the US Dollar. BCH/USD is back in a bearish zone and it could soon retest the $1,000 level.
Bitcoin Cash Price Resistance
There was a decent recovery in bitcoin cash price above the $1,200 level against the US Dollar. However, the price struggled to move above the $1,300 level and started a downside move. It seems like the price completed a correction near $1,300 and it is back in a bearish trend. It already broke the 50% Fib retracement level of the wave from the $980 low to $1,301 high.
The upside move was capped by a crucial bearish trend line with resistance at $1,220 on the hourly chart of BCH/USD. The pair is currently trading below the $1,100 level and is heading towards the $1,050 support area. It may soon test the 76.4% Fib retracement level of the wave from the $980 low to $1,301 high. A break below the $1,080 and $1,060 levels could push the price back towards the $1,000 level. The mentioned $1,000 level and the $980 support levels are important.
BCH price has to stay above the $1,000 level to avoid further declines. On the upside, an initial resistance is around the $1,150 level. Above $1,150, the trend line resistance could prevent gains near $1,220.
Looking at the technical indicators:
Hourly MACD – The MACD for BCH/USD is back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is currently heading lower towards the 30 level.
Major Support Level – $1,000
Major Resistance Level – $1,150
Charts courtesy – SimpleFX
Roboforex Adds Bitcoin Cash and Three Other Cryptocurrency CFDs for Trading
According to a press release on Bitcoin.com, Another major international leveraged trading brokerage has launched a contract-for-difference (CFD) for Bitcoin Cash paired against the US dollar. This means that Roboforex clients gain today the ability to trade the instrument on the most popular platform in the retail forex market, MT4.
Bitcoin Cash CFD
Roboforex Adds Bitcoin Cash and Three Other Cryptocurrency CFDs for TradingRoboforex, an IFSC (International Financial Services Commission of Belize) licensed financial broker, has expanded the list of cryptocurrencies available for CFD trading to its clients the via popular MT4 and MT5 FX platforms. The company’s traders now have the opportunity to speculate on the prices of bitcoin cash as well as dash, litecoin, and Ripple’s XRP. The leverage applicable for all the instruments is fixed at 1:10.
Only back in September 2017 the brokerage first provided its clients with an opportunity to trade leveraged instruments on assets from the cryptocurrency market, starting with bitcoin (BTC) and ethereum (ETH), which were made available in both Meta Trader platforms, MT4 and MT5, as well as its own R Trader.
Irresistible Popularity and Volatility
Roboforex Adds Bitcoin Cash and Three Other Cryptocurrency CFDs for TradingExplaining the rationale for adding the new instruments at this time, the company says it will allow traders to diversify their trading portfolios. It says that altcoins attracted a lot of attention from their traders’ clients throughout 2017 during the massive rally. CFD traders are especially attracted to volatility, as this form of leveraged trading allows them to go long or short. This combined with the “intensive development of the digital currency market” are the reasons Roboforex decided to introduce new crypto-based instruments.
Denis Golomedov, CMO at Roboforex, commented about the move: “We always keep up with the time and provide quality access to a wide range of trading instruments. The current situation is that a large part of our clients are trading cryptocurrencies and we see high potential in them. This market is very attractive due to its volatility. It is growing and scaling very quickly, and more and more people are taking interest in it. To satisfy this demand, corresponding infrastructure and services are required, and Roboforex is systematically, step by step, implementing them for its clients.”
Is now the best time to trade cryptocurrency on leverage with CFDs? Tell us what you think in the comments section below.
Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.