Bitcoin Cash has seen a small price increase totaling 0.7% over the past 24 hours of trading. The cryptocurrency is currently exchanging hands at a price around $443 after seeing a small 7-day price decline totaling 1.12%.
- Bitcoin Cash had found strong support at the $420 handle during September 2018.
- The market is now trading at short-term support provided by a .786 Fibonacci Retracement level.
- Support moving forward; $447, $420, $410, $400.
- Resistance moving forward; $477, $499, $520, $542, $578, $641, $667, $704.
Bitcoin Cash is currently ranked in 14th position in terms of overall market cap across the entire industry. It currently holds a total market cap value of $7.72 billion after suffering a precipitous price decline totaling -46% over the past 90 trading days.
The 15-month-old coin, Bitcoin Cash (BCH), is still trading at a value that is 89% lower than its all-time high price.
Let us continue to analyze price action for BCH over the long term to understand how the market has been behaving recently.
Bitcoin Cash Price Analysis
BCH/USD – LONG TERM – DAILY CHART
Analyzing the market from the long-term perspective above, we can see that the past 5 months have been tough for Bitcoin Cash as price action continued to decrease persistently. The market had found some form of strong support at the downside 1.414 Fibonacci Extension level (drawn in light blue) priced at $420.60. As the market approached $420 the bulls began to step in and defend the level aggressively.
Bitcoin Cash Price action has rebounded from this support level and still has yet to break below the support.
Let us continue to analyze price action a little closer for BCH/USD and highlight any potential levels of support and resistance.
BCH/USD – SHORT TERM – DAILY CHART
Analyzing the market action with the benefit from a closer time horizon, we can see that after reversing at the support identified at $420 the market went on to rally from a low of $407.90 on the 19th of September 2018 and extended to a high of $590 on the 27th of September 2018. This was a price increase totaling 45% from low to high.
After placing the high, price action rolled over and began to decline. We can see that it continued to fall until finding a level of strong support at the short term .886 Fibonacci Retracement level priced at $429 during the second week of October 2018.
Price action is now trading at support provided by the short-term .786 Fibonacci Retracement level priced at $447. Moving forward, if the bulls can regather momentum and push the market higher we can expect immediate resistance higher to be located at the short-term .618 and .5 Fibonacci Retracement levels (drawn in green) priced at $477 and $499, respectively. It is important to highlight that the $499 handle is significantly bolstered by the previous long-term downside 1.272 Fibonacci Extension level priced within the same region.
If the bulls can continue further higher they will meet further resistance above at the short term .382 Fibonacci Retracement level priced at $520 followed by the short-term 1.618 Fibonacci Extension level priced at $578. The resistance at $578 will require significant momentum to overcome due to the 100-day moving average being closely located within this area also.
If the bulls can persist even further higher above $600 then we can expect more resistance above at the 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $641 and $667 respectively.
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Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Follow him at @TcmYaz.