Bitcoin Cash Price Analysis: BCH/USD Tumbles Further into the Abyss, and Not Even Roger Ver Can Save it

  • BCH/USD has broken the recent bottom area of $150, making room for another wave of selling.
  • Roger Ver, speaking to Bloomberg in Tokyo, was bullish on the long-term fundamentals of cryptocurrencies in general.

The Bitcoin Cash price continues to get slammed by the market bears, with a lack of mercy being shown. BCH/USD is currently trading within its fourth consecutive session in the red. At the time of writing, the cryptocurrency has lost around 23% over that mentioned period. Since 7th November, when the big selling came into play, the price has tanked a whopping 77% in value – a serious under performance in comparison to many of its peers. Bitcoin Cash is not being helped by the general bear market, but particularly suffers post the hard fork event.

Long-Term Future Remains Bright

In an interview with Bloomberg in Tokyo, Roger Ver was questioned on whether there really is any longevity for cryptocurrencies. He covered the following: “As a self-proclaimed fundamentals investor I believe that the long-term the future is brighter than ever for cryptocurrencies. There is more awareness, more adoption, and more stuff happening all over the world”. It doesn’t come at a surprise that he remains very much bullish despite the prolonged downturn seen across the market.

Technical Review – BCH/USD

BCH/USD daily chart

Firstly, as touched upon earlier, there is no shying away from the intensity of the current downside pressure. The price is moving within complete unknown territory, the abyss. Whether looking at BCH/BTC or BCH/USD, there is nothing to reference in terms of historical levels. It is just down when the sellers become exhausted and the dust settles. Given the movement south, it wouldn’t be too surprising if this is causing heavy reluctance for potential incoming investors of Bitcoin Cash. Furthermore, current momentum would even suggest, that there is still some more room to the downside.

Following the steep drop from 7th November right up until 25th November, BCH/USD was given time to consolidate. This took place from 25th November up to 4th December, forming a near-term bottom around $150. Price action formed a range block within this consolidation mode, during the mentioned period. The session of 4th December saw enough bearish pressure, to force a break and daily close below that recent bottom of $150. As a result, playing to the textbook, a breakout to the downside could pick up momentum after the bears made a move from the range block formation.

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.

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