Bitcoin cash (BCH) was the shining star earlier in the week when Coinbase included it in its exchange. Now it seems to be one of the biggest losers in the dive of digital currencies. Why are they falling? Here are 5 reasons for the crypto-crash.
BCH/USD dipped under a level of support but managed to bounce back in an erratic session. Nevertheless, it is down over 20% and seems vulnerable.
Here is the chart showing the fall, followed by descriptions of the technical levels to watch out for:
BCH/USD support levels
The price of bitcoin cash already dipped under $2072, the level that provided support to the digital coin before the huge rally. It is important to note that $2072 forms part of a range: the initial swing above $2000 sent the price to a swing high of $2,111 and further attempts put it just a few dollars above the round number of $2000. All in all, this is an area of support.
Further significant support is at $1,793. It served as a double top for BCH/USD in late November and then as a stepping stone before the big rally.
The next level to watch out for is much lower: $1,116. It was a stubborn level that held the pair from falling since early November and until the surge began in mid-December.
BCH/USD resistance levels
From the price at the time of writing, $2,445, there is quite a bit of space until we can point out a line of resistance at $2,815. This was the bottom of a very high range that was seen in recent days.
The next level to note is $3,200. Also here, the line cushioned the volatile moves in the high range and also capped an attempt to recover just before the big crash.
Further above, $3,917 held BCH/USD from breaking above $4000 in the past few days. The last line on the topside is the all-time high of $4,238, which was only a swing high. What’s next if we have a rally? $5,000 is probably the next big prize.
More: Will the next big bitcoin rally come at Bitcoin Cash?