Bitcoin Cash Price Analysis: BCH/USD Bulls are Well Rested after Small Pullback

  • Bitcoin Cash price cooled for the past couple of days, but bulls are back in the driver seat.
  • It is critical in this current bull run that the price remains above $147.55, an important daily support level.

Bitcoin Cash price between the 23rd to 25th December cooled following a large consistent bull run. BCH/USD had been within an explosive uptrend from the 16th, right up until the 22nd December. It gained well-over 200%, smashing through vital barriers of resistance to encourage further buying pressure. This before the bulls becoming somewhat exhausted, being forced to retreat back down at a daily support, $147.55.

Bitmain Cuts its Entire Bitcoin Cash Development Team

In line with the recent price sell-off, it was reported that Bitmain was forced to lay-off their Bitcoin Cash development team. Reportedly they shut-down their facility in Israel, making them another major player laying off its workforce. The news was detailed by Blockstream CSO Samson Mow. Citing Chinese news wires, he said that nearly 50 workers were released, which were all in relation to the Bitcoin Cash efforts of the company.

Furthermore, many of those workers had only recently joined and were given just a single week notice. This group was suggested to have been working on the company’s Bitcoin Cash GO client. It is worth noting that Bitmain has been planning an IPO, but there has been a series of stumbling blocks. Other reports suggested that Bitmain is recording losses following the crypto market crash and hurting its BCH reserves.

Technical Review – BCH/USD

BCH/USD daily chart. The importance of the support $147.55 can be seen here. A failure to remain above could see the recent gains given back.

As touched upon earlier, BCH/USD took a decent bounce off a strong daily support, $147.55. It is vital to this current bull run that the price remains above this level. Should the upside momentum convincingly pick back up, then ultimately eyes are locked in on the $410 territory. This price level was also a key daily support level, that had initially prevented BCH/USD from a free-fall between September to the start of November. Given the length of service with this $410 level, it is likely to prove tough for the bulls.

Referring to the $147.55 level, should the bears regain control to retest and force a break, it could be very punishing. A technical development such as described, could put the recent bull run of gains at jeopardy. The first level of support will be eyed at $106, which was a temporary daily support level on 6th December. After breaking below this, it prevented the price from moving back above, seeing rejections between 7-10th December.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Ken has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.