Bitcoin Cash shows a huge sign that it would soon recover, having had price drops recently. As the digital asset industry enters the bullish market, many assets record new gains or recover. Many people rushed towards cryptocurrencies during the consistent price rise, which took the largest asset, Bitcoin, to $40,000.
Some other altcoins like Ethereum and Bitcoin Cash attracted new investors, who bought the asset in anticipation of an instant surge. Their purchases helped the assets surged to new highs, which suffered massive price corrections when selling pressure intensified. Digital asset’s volatility is still unusual to new traders, who hastily make decisions when cryptos experience sudden price falls. The assets’ volatile nature makes them one of the world’s riskiest investments.
BCH faces bears dragging prices down
The asset has its resistance around $500, $550, and $600, while its nearest support levels hold at $300, $250, and $200. Early on during the day, the asset witnessed intense action from the bears, which caused the asset to lose substantial value.
The asset is now seeing some recovery from best activities, with more recoveries expected very soon. On the other hand, some believe that the price increase shows that BCH would soon experience a surge that might exceed its current peak. There are many speculations that cryptos would see a similar surge in early January because of the current market structure.
The currency had a daily high of over $400, while its lowest price wasn’t too far from that. The asset is not slowing down because it currently tests the $400 mark frequently, which experienced a sharp decline after that. Its safe to note that the digital currency still had its movement towards the 9-day and 21-day moving averages, but its failure to maintain a bullish trend might be a concern.
Bitcoin Cash has had frequent rises and declines, making it very hard for analysts to predict the asset’s next move. Its lack of a strong bullish market could cause a slight decline, with the asset still struggling to maintain its levels.
Bitcoin Cash could record new highs
The biggest problem the crypto has presently is the resistance around the $500 range. The asset needs its bulls to help move past the resistance and then hit the nearest resistance level after that, meaning that the asset could retake its previous value. Fortunately, the asset has support around the $400 mark to prevent losses if the asset starts to decline from rejection.
Based on charts, the asset would soon witness a bullish rally necessary for the crypto to record notable gains. When Bitcoin dropped, many expected a similar drop in other digital assets because BTC’s price activities significantly affected others.
Presently, market bulls want to take control of the situation and help the crypto reach some stability. If the price eventually rejects around its closest resistance, it could drop to the nearest support, leading to declining further. But with Bitcoin’s current recovery, other assets could also record new gains.
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