- Regulatory discussions surrounding Facebook Inc.’s Libra cryptocurrency could be derailing the market recovery.
- Technical analysis shows that Bitcoin Cash is likely to slide under $300 in the short-term.
Bitcoin Cash hit a snag at $320 following the recovery from lows at $255 traded Monday. The entire market came under heavy selling pressure at the beginning of week amid the heated regulatory discussions surrounding Facebook Inc.’s Libra cryptocurrency. Market volatility shot up significantly with cryptos slumming back down due to failed recovery attempts.
Bitcoin Cash currently holds the fifth spot on the market with a market cap of $5.4 billion. It has a 24-hour trading volume of $1.7 billion and like Bitcoin it has a maxim supply of 21 million, however, currently only 17,900,063 BCH is in circulation.
At the time of press, Bitcoin Cash is struggling to hold on to $300. This comes after the price lost ground from the critical resistance at $320. The 100 Simple Moving Average (SMA)1-h is trying to offer support. The immediate upside is limited by the 50 SMA 1-h. More resistance is also coming from the 100 Exponential Moving Average (EMA) currently at $306.45.
Technical analysis shows that Bitcoin Cash is likely to slide under $300 in the short-term. The Relative Strength Index (RSI) is moving towards the oversold while the Moving Average Convergence Divergence (MACD) is crossing into the negative as an indicator of building bearish pressure. Possible support areas are $290, $280 and $260 – $255.
BCH/USD 1-h chart