Bitcoin Cash has stopped going down by Friday May 18 and is now trading around $1,205.10. Lately, it has not managed to reach $1,350 and has fallen against the USD, which can be clearly seen on D1, said Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
BCH has also fallen below the trend line at $1,250 that acts as a dividing line between the bulls and the bears. As of now, the digital coin has run enough correction, but still may face issues when trying to recover and break out $1,240 or $1,250.
Meanwhile, the fight between the sellers and scarce buyers has become more tense lately. However, the buyers are not quite lucky, as after BCH headed down below $1,340, the bears got active and the selloff grew stronger.
In fact, the downward wave was so strong that Bitcoin Cash nearly reached $1,150, although it stopped at $1,156. On H1, the bearish trend is very clear, with its upper line at $1,250.
This way, $1,150 is the key support now, while the resistance is at $1,250. The MACD is getting lower on D1, and while still in the positive, is issuing a sell signal. The Stochastic is also getting down and signals a sell.
There is not much fundamental info for BCH, but still there is some. On May 15, a hard fork occurred at block 530356, but this had been announced before, and thus did not stress the market at all, as everyone who wanted to update the client software did it with no major issues. Hard forks are occurring more frequently lately, while the developers are trying to anticipate it and prevent the market players from accumulating large volumes, especially with ASIC miners in place that enable mining more with less energy consumption.
What is now important for Bitcoin Cash is the block size growing from 8MB to 32MB, which will reduce the transaction cost and downtime. Besides, OP_Codes that have been deactivated before are now again included into the cryptocurrency.
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.