The digital asset industry continues to move around the red zone as it has moved throughout last week. The assets have not made notable gains and failed to move past the dollar. Experts link the new drops to bear activities that are working towards dragging down prices.
Crypto investors are advised to hold their digital assets as the industry would likely see more downward movements before it goes up. The beginning of 2020 has been good for the digital asset space, as assets continue to gain at an outstanding speed with the bull run. But, indicators show that the bull run might be over as digital assets now face a decline.
Bitcoin Cash drops to $500 against the dollar
The US dollar is currently winning against Bitcoin Cash, as the government-issued currency led to the asset’s price drop. Bitcoin Cash is now valued at around $450, after its drop from its $500 position. Currently, the asset’s key resistance level is around $700, $800, and $900. On the other hand, the support level holds at $400, $350, $300.
Experts explain that Bitcoin cash could see lower drops as the asset continues to struggle to retake its $700 position. The asset’s 14-day simple moving average is currently over the 50-day simple moving average. This means that the smaller simple moving average is above the bigger one while moving towards the east.
Fortunately, some bullish signals around the 50-day SMA would protect and strengthen it against further price losses. The Stochastic Oscillators are around the oversold area, which might be disastrous for Bitcoin Cash, as it means the asset would see more falls.
Indicators show that the Bulls would have the upper hand in the next session as the price moves to the $450 mark. This could mean that the asset would see further lows around the $500 and $400 region before the market participants help the crypto move up the charts. It’s safe to note that price action is necessary for the upward movement to affirm the possibility.
The daily charts show that bears might be losing their ability as charts show lesser activities. Still, the bears might be strong enough to take the asset to the $400 point before the bulls reclaim dominance. Investors should avoid causing an intense selling pressure that would further worsen the price drop. At this point, investors should go long-term to help the asset make some notable gains.
BTC/BCH Analysis
Bitcoin and Bitcoin Cash are both at a point where bears are still present, making it difficult to show a significant uptrend. When comparing BTC to the King coin, the latter seems to feel some pressure against its counter crypto. The price drops will stop soon as the value closes in on the base-line. Bitcoin is likely to recover faster when compared to Bitcoin Cash.
The whole industry might recover soon as charts show that the bulls are fighting to return to the market. Bullish momentum is necessary at this vital point, and more buying pressure could help the asset achieve that aim.
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