Bitcoin Cash Price Analysis: U.S. Electronics Giant Avnet to Accept BCH; Price Action has Cooled but Subject to Further Buying Pressure

  • Nasdaq listed electronics giant Avnet is set to start accepting Bitcoin Cash and Bitcoin as a method of payment. 
  • BCH/USD price is consolidating after a decent push north ahead of further potential bullish momentum. 

BCH/USD: Recent Price Behavior

The Bitcoin Cash price has cooled very marginally over the last two sessions, following a recent strong rally to the upside. BCH/USD is on the road to recovery after producing a 2019 low down of $104.40 on 28th January. Since this date, price action has been supported to the upside by a near-term ascending trend line. It has provided necessary comfort in the bulls attempt to track further north. The price has been gaining over the last four weeks, closing firmly in the green.

U.S. Electronic Giant Avnet to Accept Bitcoin Cash

The U.S. electronics giant and Nasdaq listed company Avnet has announced that it will now be partnering with Bitpay. This partnership will allow the business to start accepting cryptocurrencies as a method of payment for its products and services. BCH is one of the cryptos being supported.

Avant is one of the world’s largest distributors of electronic components and embedded solutions. It is currently ranked no. 128 within the Fortune 500 list and no. 414 on the Fortune Global 500, with reported revenues of around $20 billion a year. Avant detailed that it is adding supporting cryptocurrency payments to provide an additional convenient way for their customers to do business.

The vice president of demand creation, Sunny Trinh, said: “Our customers have been asking to pay in cryptocurrency, and we listened. Bitcoin gives our customers added flexibility, and we are excited to offer our customers the option to pay with bitcoin or bitcoin cash.” In terms of volume of transactions, he noted: “the company has already closed several multi-million-dollar transactions.”

Technical Review – BCH/USD

BCH/USD daily chart.

The bulls earlier this week pushed for a retest of the 2019 high print, which was seen up within the $170 price region. Given the recent minor cooling observed, eyes must be on the areas of support to the downside. At the time of writing, BCH/USD can be seen testing a key near-term zone of demand, tracking at $155.50-$145.00. Should this fail to provide necessary support, then the price could quickly be forced to retest the mentioned ascending trend line. BCH/USD may find itself retesting $130.00 to the downside, which then threatens the 2018 low, $104.40.

To the upside, eyes are on the above supply area tracking from $170.00-182.00. BCH/USD has not traded firmly above this region since 24th December. A breakdown here would leave the door open to a retest of the December 2018 high print of $240.00, before it entered a bear market. Sellers are likely to be camped from $220.00-$240.00, where the price was losing ground at the back end of 2018.

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.