Technical Analysis of Bitcoin Cash

The beginning of the 2019 year has been very negative for the cryptocurrency market and all major cryptocurrencies are still under the pressure. Bitcoin Cash (BCH)  is also pressured by this situation and for now, we can not see the “light” at the end of the tunnel. The price of this cryptocurrency has weakened from $170 below $110 in less than 30 days and the current price stands around $120. This is a highly speculative cryptocurrency and still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk. According to some estimates, Bitcoin Cash will not be able to replace Bitcoin and many skeptics believe it may not survive in the long-term. When we look at the 1-year chart we can see that Bitcoin Cash is moving in “downtrend”. As long Bitcoin Cash is below $1 000 this cryptocurrency is in the “SELL” zone. Short term support and resistance levels are $100 and $200 – If the Bitcoin Cash jumps above $200 that would be a “BUY” signal and the open way to $250 and $300. If the Bitcoin Cash jumps above  $1 000 that could be a strong signal of the trend reversal and the open way to $1 500. On the other side, if the BTH falls below $100 that will be a signal “SELL” signal and the next target could be around $80 or even $50.

Advice: In my opinion, this is a highly speculative cryptocurrency and still very risky, I would invest only a small sum of money in this cryptocurrency. Bitcoin Cash aims to take Bitcoin in a new direction geared towards faster transaction speeds and lower fees. As for the technical picture, the Bitcoin Cash remains in bearish phase but if the price advances above $200, short-term traders can enter the position with the stop loss at $185 and take profit at $250 or even $300.