Technical Analysis of Bitcoin Cash

The second week of January 2019 has been very negative for the cryptocurrency market and all major cryptocurrencies have weakened. The cryptocurrency market has shed around 10% of market capitalization in only several days and for now, there is no important reason to change this negative trend. The price of Bitcoin Cash is also pressured by this situation and the price of this cryptocurrency has weakened from $160 below $125 in less than five days. Bitcoin Cash aims to take Bitcoin in a new direction geared towards faster transaction speeds and lower fees. This is a highly speculative cryptocurrency and still very risky, 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 Bitcoin Cash falls below $100 that will be a signal “SELL” signal and the next target could be around $80 or even $50.

Advice: The price of Bitcoin Cash has been in the “bearish” phase since January 2018 but we can not say that the lowest price in December 2018 is the end of this phase. 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. 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.

 

About Stanko 84 Articles
I am a professional forex, cryptocurrency and stock trader looking for more opportunities to penetrate the field. Writing, research, analysis, are all things I enjoy doing aside from the core trading practice as they provide a deeper perspective of market activity. I am well versed in technical analysis as well as sentiment behavior. I have 10 years experience in stock and currency markets ( analysis and trading), I am also an experienced cryptocurrency analyst. I have been writing business, finance, stock articles for over five years. My biggest strength is in technical analysis

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