The cryptocurrency market has seen some major changes over the last several weeks, with support breaks and new resistance formations coming imminently. Apart from bitcoin’s wild swings, altcoins like bitcoin cash have also become a prominent player in the current financial ecosystem.
Bitcoin’s hard fork was busy fending off competition from Bitcoin SV when the market crash started due to the coronavirus outbreak. In the past week, Bitcoin Cash has been one of the cryptocurrencies involved in up-down price moves.
At press time, BCH was trading for $216.44 with a total market cap of $3.98 billion. The cryptocurrency was holding the 5th position on the charts with a 24-hour market volume of $2.8 billion. Some analysts believe that Bitcoin Cash needs some sort of volume injection as multiple markets were drying up at the moment.
A majority of BCH’s price action depends on Bitcoin, just like other altcoins. As long as Bitcoin does not surge significantly, holders need to be wary of BCH price surges.
The hourly chart showed that Bitcoin Cash was in the process of correcting its earlier prices. BCH’s immediate support was at $214.4 while the immediate resistance held at $226.1.
The Parabolic SAR was above the price candles which meant that Bitcoin Cash was heading into more bearish territories.
Bitcoin Cash’s Chaikin Money Flow indicator was below the zero line. The graph has stayed below the zero line since March 29 after the capital leaving the market surpassed that of the incoming capital.
The Awesome Oscillator had dropped in amplitude after markets came to a standstill. This market predicament is expected to change as soon as the world learns to cope with the spread of the coronavirus.
Bitcoin Cash’s daily spectrum was something to watch out for as the cryptocurrency broke all of its immediate supports. The new daily support for Bitcoin Cash was $140.68.
The Chaikin Money Flow indicator on the daily chart had spiked above the zero line which meant that the capital coming into the BCH market had increased.
The Awesome Oscillator had increased in magnitude for the first time since the start of the year.
BCH’s Parabolic SAR was below the price candles, a sign of bullish markets in the future.
A majority of the aforementioned indicators sided with the bear as world markets braced itself against COVID-19. Financial analysts stated that the end of the last quarter was reminiscent of the tragic 2008 financial crisis.