The digital asset space has been hanging on the edge for the past few days due to the unexpected price crash that the industry currently faces. Despite it being customary for assets to face some corrections after a continuous bull run, the whole industry has been losing significant gains due to the bearish mark. Last week, the average asset lost around 25% or above due to GBE fluctuating market, which is still affecting Bitcoin Cash.
BCH is one of the industry’s most used altcoin and has shown impressive performance in the past. But now, the continuous decline might be taking significant parts of its value, leaving investors with constant losses.
Bitcoin Cash trades at $490
The asset’s volatile nature is a thing everyone understands affects the adoptability of the crypto. While all assets have all volatility levels, most digital assets are highly risky because they have higher than average volatile movements. The movement has its advantages in numerous ways, as Bitcoin was able to earn more than 50% of its value from December to February before the currency corrected.
While the currency was in the red zone yesterday as it fell from $500 to the $490 range, it continues to record little but positive gains, which would likely continue today. The asset’s move below the $500 range is probably for the short term as its resistance stabilizes around $650 and above, while the support level holds around $195, $175, and $155 points.
The crypto shows a bearish outlook, meaning that it could dip further into the $400 range as it moves below the 9-day and 21-day averages. The indicator also shows more red flags as the RSI indicator shows around GBE 45-level range, which means more price falls.
The bulls have to understand that support is critical at this point, meaning that they have to keep the price afloat by holding support around $480. The crypto also shows a likelihood that it would go upwards as it tries to take $500.
Asset’s future is looking bearish
Actions from the bull would likely help the movement, causing a price jump around the moving averages. If buyers continue buying the crypto, the first resistance that would be attained should be $600 before it moves higher. It’s safe to note that beat activities can take this asset below the lower supports. Unfortunately for Bitcoin Cash, the crypto would likely continue falling down the charts as it moves below its moving averages. Sellers are waiting on the asset to climb for them to continue pressing selling pressure.
The reduction in selling pressure helped the asset gained sporadically within the past few days, as holders were holding and not selling. But if it moves higher, people could choose to reduce their Bitcoin Cash holding to prevent unexpected price falls in the future.
Experts call BCH one of the cryptos with great potentials to move the digital asset space in the right direction. On the other hand, buyers have to push more buys for the crypto.
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