Bitcoin Cash Price Developments
Bitcoin Cash price has been hammered on Monday, with big sellers returning with force after a breakout of a narrowing range. BCH/USD dropped double-digits in the early part of trading, having been down as much as 10%. Selling pressure can be seen across the cryptocurrency market, with BCH being one of the standout under performers. Stops appear to have been triggered to the downside, causing some exacerbation in the latest pop to the south.
Price action was initially confined below a descending trend line, which has been running since early November 2018. The bulls however on 22nd January managed to force a way above this acting resistance. Buyers further capitalized on this, producing another session in the green after the breach. Momentum to the upside was forced to slow down however, as the price reached the upper part of the narrow range.
Daily Range Breakout
Market bulls did not have enough steam to run through this range-block formation, which has contained the price since 11th January. Right up to the Sunday session, this was 16 consecutive days within this narrow form. Given the length of time BCH/USD traded within these conditions, an explosive breakout was almost a certainty. The risks were heavily mounting to the downside, with the sellers also capitalizing on a bearish flag structure.
Trend Line Retest
As detailed earlier, the price had broken above a descending trend line. The downside seen in the session today has resulted in BCH/USD retesting the prior acting line of resistance. This is now supporting the price from a further free-fall. In proximity sees a vital level of daily support, $105, this just ahead of the big psychological $100 mark. A breach here could result in a very fast move back south to the December and 2017 low, $73.50.
Bitcoin Cash Drops Down in Ranking
With the large under performance and double-digit drop for Bitcoin Cash it has fallen down in the rankings. It fell to sixth by market cap, seen at $1.94 billion. EOS is now at fifth with a market cap of $2.01 billion and Tether sitting in fourth at $2.03 billion. BCH’s peers were not hit as hard by this most recent attack from the market bears.
Technical Review – BCH/USD
Should the mentioned trend line prove to be of decent support, then expect a bounce back towards $117, the lower part of the breached range-block. Enough upside momentum will then likely see the price moving back within $117-$135 zone. Further to the north, resistance should be noted at $147 and then $177.50, both of which are hourly supports.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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