For the previous two weeks, Bitcoin Cash has adopted in the steps of main cash in decline. The coin now appears to be like considerably bearish regardless that it has managed to get better just a few of this week’s losses. However, downward strain will doubtless proceed over the weeks forward as sentiment in the broader market struggles to discover momentum. Below are the key BCH highlights:
Bitcoin Cash has stopped the downward decline with a modest acquire right this moment.
But there isn’t any actual likelihood of a sustained bullish run
BCH will doubtless trend decrease and ultimately lose the $100 assist
Data Source: TradingView
Why holding a $100 is essential?
BCH has confronted quite a lot of strain in 2022. But the coin has nonetheless managed to keep above $100 all 12 months spherical. This is a crucial psychological barrier. It reveals the resilience of BCH in the face of market-wide pressures. But for the primary time in 2022, there’s a actual threat that BCH might lastly fail to hold the $100 mark.
In truth, on the time of writing, the coin was buying and selling at round $120. This was after a modest 24-hour acquire of round 3%. BCH is dangerously shut to the $100. It solely wants a 20% decline to fall to double digits.
For a coin that has already dropped 22% over the past 7 days, one other 20% decline is extra possible than you assume. Nonetheless, as soon as $100 is breached, anticipate BCH to fall additional in the direction of $80 earlier than it finds assist.
Why is BCH falling?
The downtrend that BCH has seen isn’t remoted to the coin alone. In truth, we’ve got not seen any main adjustments in the coin’s fundamentals right here. The fall is essentially attributable to financial and financial elements in the worldwide economic system.
Sadly, these robust financial circumstances won’t ease anytime quickly. As such, BCH traders should be prepared for a constant bear season.