Decisive Time for Bitcoin Cash (BCH) – Bounce or Turn More Bearish?

Bitcoin Cash turned out to be one of the biggest losers during the cryptocurrency crash in May and June. It reversed at $1,440 by the middle of June and crashed down to $500 about a week later. But, the crash didn’t end there, and sellers continued to make new lows.

Bitcoin Cash Live Chart

They pushed to $470 by the end of May, while in June, the second wave of crypto selling came, pushing Bitcoin below the support at $30,000. The downtrend in the BCH/USD continued, which saw it falling to $390 – that adds up to over 70% in total losses for Bitcoin Cash.

The 20 SMA (gray) has been acting as resistance on the daily chart, reversing the price down after the latest bullish attempt. So, the trend is quite bearish for Bitcoin Cash, but now comes the biggest test for BCH traders on both sides.

The 50 and 100 SMAs are holding as support for now

On the weekly chart we can see that Bitcoin Cash failed to reach the 2017 highs above $4,000, and it has slipped below the 20 SMA (gray) which acted as support during the uptrend earlier this year. Now, BCH is facing the 50 SMA (yellow) and the 100 SMA (green), which will decide whether BCH will bounce off from there or continue lower.

The 20 SMA is acting as support on the daily chart

On the monthly chart, the picture is similar to the weekly one, although the stochastic is oversold now, which indicates a previous bullish reversal. So, there’s a chance we might see a bounce from here, and the 20-month SMA (gray) has been acting as support in the last two months. This is not too bad a level to go long on BCH/USD, but for now, we will follow the price action a bit longer, and if sellers can’t push below the 20 SMA soon, we will open a long-term buy trade, which you can follow on our forex signals page.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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