Bitcoin Cash Price Analysis: BCH/USD Could Be Forced to Retest Low of $73.50

  • Bitcoin Cash remains vulnerable to further downside pressure. Next support eyed at $105 and then $73.50.
  • OKEx exchange have announced their support for BCH margin trading via their platform.

The Bitcoin Cash price, like the rest of the market, has been subject to hard selling. BCH/USD has taken a beating by the bears over the past two trading sessions. A large wave of pressure unexpectedly to the downside rippled across cryptocurrencies on 10th January. BCH/USD fell a chunky 20%, moving to the lowest levels seen since 19th December, during the most recent bull run.

Coinciding with that move south, there had been a rejection for the bulls, after meeting some known resistance. A descending trend line can be seen running from 6th November 2018, when the market picked up pace in the direction south. Given that latest failure to break above, this stacks the odds further in the favor of the market bears.

OKEx Support BCH Margin Trading

Earlier in the week, OKEx, one of the leading global cryptocurrency trading platforms, announced they are now supporting BCH margin trading. OKEx detailed in their recent blog post, margin trading of Bitcoin Cash will be paired against Tether (USDT) and Bitcoin (BTC). Users will be able to trade BCH/USDT and BCH/BTC with 3x leverage. The exchange is also looking to to adjust the margin borrow limits.

Binance’s Trust Wallet Supports Bitcoin Cash

Trust Wallet this week announced that they are adding Bitcoin Cash support to its Android application. In addition, support was also added for Litecoin (LTC) and Bitcoin for all its users. Elsewhere, further insight from the development team, Trust Wallet will be supporting several additional coins to come.

Technical Analysis – BCH/USD

BCH/USD daily chart. Descending trend line preventing further upside.

Following the rejection blow and deep fall on 10th January, which went to break key support, the door has been left open to further pressure south. An important near-term level was seen at $146.50, as this had supported the price from 25th December 2018, right up to 10th January 2019. During the period of consolidation at the time following the December bull run, it prevented the required comfort.

Keeping in mind the above-mentioned breach, there isn’t too much in the way of major support, until $105. This was the 6th December low and where BCH/USD had consolidated between 7-10th December, before another squeeze south. Bitcoin Cash went on at the time to print a low down at $73.50.

Should the price want to see an exerted wave of buying pressure again, then the bulls must break above the running descending trend line. It can be currently seen tracking at $152-$152.50, a breach will raise attraction levels largely again for buyers. The challenge again of supply seen running from $200-$240 range, will come back into play. BCH/USD most recently faltered here on 24th 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.