- Bitcoin is the biggest single digit gainer on Thursday.
- BCH/USD tests $130 resistance as the bulls return from hibernation.
Cryptocurrencies are still languishing under the bears’ hands. The bearish trend crossed into the new year even after dominating the market in 2018. The market cap declined significantly last year from roughly above $800 billion to approximately $100 billion. There was a recovery in the period leading to Christmas where cryptos corrected higher to about $139 billion. However, it seems the market is yet to bottom and traders should probably brace themselves for a rough 2019.
Bitcoin Cash is among the worst hit with declines in the excess of 90% from its all-time high. The split that took place on BCH chain that birthed Bitcoin Cash ABC and Bitcoin SV increased the volatility that saw the asset explore the levels below $100. While there has been a correction to the upside with the bulls testing $170, the bears have not been left behind sending BCH/USD back to the drawing board.
The sudden drop last week saw Bitcoin Cash smash through the support areas at $160, $140 and $130. Further, declines found support at $120 but the asset has not been able to make any significant movement above $135. In fact, BCH/USD is currently locked in a tight range with a significant hurdle around $135. There is range support at $125 but the primary support is highlighted around $120.
At the time of press, Bitcoin Cash is making an upward move above the 50-day Simple Moving Average (SMA) and the 100-day SMA. The bulls are battling to break above the immediate resistance at $130. The Directional Movement Index (DMI) is in an upward direction to indicate that the bullish momentum will continue in the short-term and could even touch $140 to the upside.
BCH/USD 1-hour chart
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