The cryptocurrency market has been very much active lately, with selloffs in some parts of it and energetic buys on local news in others. Bitcoin Cash is being active, too, although the volatility seems to be fading out as we move forward, as Dmitriy Gurkovskiy, Chief Analyst at RoboForex said.
There are some selling positions across the board, but not very strong ones. Bitcoin Cash is currently trading a bit above $1,040, with the trend line running between $1,065 and $1,068. If the bears finally fail to strengthen their positions, BCH may break out the trend line and head towards $1,100, although local resistance levels at $1,065 and $1,075 may prevent it from doing so. Meanwhile, the closest support is right at $1,000, also being the lower boundary of the short term channel, the upper one being $1,045.
If the sellers do succeed in getting more active, watching the local support at $1,010, being also the lower bullish trend line, is a good idea.
Long term, Bitcoin Cash may well fall to $854, if the bears become strong and break out $1,000. Conversely, with the bulls being active, the price may head towards $1,200 after taking over $1,100.
The MACD is currently in the negatives, issuing moderate sell signals, although its rangebound movement makes such signals somewhat weak. Meanwhile, the Stochastic is falling and is likely to give a clear bear signal soon.
Fundamentally, the cryptocurrency market is not doing very good. As such, Google is reputed to be ready to ban cryptocurrency and ICO ads, and this is being actively discussed today. So, the web giant is going to shut its doors for crypto, just like Facebook, although in case of Zuckerberg’s creation, people just learned to bypass the ban by deliberately mistyping cryptocurrency names. However, Google officials have already stated that this method won’t work in this case.
Google’s ban may mean more interest towards digital currency sector, but it also may mean that many potential users will be failing to get the info through sources they have got used to. This is actually what creates some negative background for the cryptocurrency market.
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.