- BCH/USD likely movement is sideways downwards.
- MAS’ Menon says that the digital tokens do not have the intrinsic qualities that would warranty the term money.
Bitcoin Cash has been performing relatively better in comparison to the other cryptocurrencies in the market. Following the upside that kicked off towards the end of September, the crypto surged almost hitting $600 but formed a high around $580. There were subtle declines that occurred at the beginning of the end of last, although the buyers held their ground at $505 stopping movement below the lifesaving support at $500.
This week began with BCH/USD making upside corrections in an ascending channel whose support has already been broken. The trend made it above $530 but could not retrace above $535 resulting in bear corrections. Moreover, Bitcoin Cash price has broken below the trendline support at $518. Besides, the price is currently trading below both the 50SMA and the 100SMA. At press time, BCH/USD declines have taken refuge above $510 and a slight bounce is underway towards $515 immediate resistance.
The trend is still in favor of the bears with the RSI ranging slightly above the oversold region. The trends direction and strength are confirmed by the DMI which is ranging at 55%. Therefore, BCH/USD likely movement is sideways downwards. The bulls must show their committed to pulling BCH price by defending the support at $510. As mentioned, other key support areas are $505 and $500.
In other news, while speaking on Bloomberg, the managing director of the Monetary Authority of Singapore (MAS), Ravi Menon emphasized that cryptos are not currencies but digital tokens. He said that the digital tokens do not have the intrinsic qualities that would warranty the term money. According to Menon, these qualities include but not limited to stability in value, a means of exchange, it is the liability of a central authority, for example a central bank. Menon added that cryptocurrencies are far from achieving most of the qualities of a currency. He later said that investors need to distinguish among the various digital assets in the market but particularly warned gains security tokens which need to be regulated under the Securities Laws.
BCH/USD 1-hour chart
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