Bitcoin Cash volatility has been somewhat lower in March, as the market is kind of at a loss and does not know what is going to occur next. Bitcoin momentum has slowed down, and this of course has made altcoins to do the same, Dmitriy Gurkovskiy, Chief Analyst at RoboForex concerns.
On D1, one can see Bitcoin Cash failed to break out $1,080 and went lower, being pushed by tech signals and fundamentals. At $1,040, the upper trend line was broken out. Currently, BCH is trading at $992, being below the 100-hour MA, which is a bear signal.
While Bitcoin Cash was sliding down, the intermediate support levels at $980 and $950 had been formed. If the selloff continues, there are more supports down there: $840 and $823.
Currently, the support at $950 is very likely to be broken out, while the intermediate level that may prevent the bears from going further is at $900. On the other hand, BCH went below $1,000 very rapidly, and this will allow the investors to look for a good entry point for buying.
So, the major support for Bitcoin Cash is $950, while the resistance is at $1,040. The MACD on D1 is in the negative area, going along the pivot line and still issuing a moderate sell signal. The Stochastic is, conversely, in the positive area, but is going lower, issuing a sell signal, too.
As for fundamentals, BCH and other cryptocurrencies are under pressure because of Japan’s warning issued towards Binance regarding its lack of regulation and licensing. The crypto exchange was warned against working without any license in Japan by the Japanese Financial Services Agency (FSA). Later, Binance said it had worked successfully with FSA and had not got any warnings.
Licensing would help Binance very much, as the cryptocurrency exchanges in Japan very often suffer from hacking: as per Japanese police report, 149 exchanges were hacked in the country in 2017, losing collectively around $5.3B. FSA protection may help Binance to avoid such risks. Currently, Binance is not under FSA’s jurisdiction, so if the exchange loses money, it won’t be able to give it back to the owners.
Twitter users have already digested this information and said that even negative news may subsequently lead to some positive movements.
Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.