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  • BCH/USD is trading between the moving average support and resistance.
  • Bitcoin Cash price eyes the upper supply zone at $900, but short-term signals show further lower corrections will occur.

The cryptocurrency market is slightly bearish mid-week although most expected the worst after the largest crypto exchange in South Korea, Bithumb was reported to have been hacked. The market has muted reaction to the hacker event where $31 million worth of virtual currencies were stolen. Hacking threats in the space have been on the rise lately. However, in the meantime, Bitcoin Cash is correcting lower and testing the support from the 38.2% Fib retracement level with the last high leg of $912.1 and a low of $801.

Bitcoin Cash rejected the support at $900, sliding into the $860 range in the Asian trading hours on Wednesday. It is the fourth largest digital asset by market capitalization and with a market cap of $15,017,345,440 at the time of press. It has formed a brief bearish flag pattern supported by the 50 Simple Moving Average.

On the upside, the chart shows Bitcoin Cash facing immediate resistance from the 100 SMA, which is marginally below another short-term resistance level at $880. The area at $900 is still the upper supply zone we explored in the price analysis yesterday.  BCH/USD broke above this supply zone but selling pressure prevented further gains towards $920.

Bearish signals can be observed using technical indicators on the chart; the stochastic is dropping drastically and is currently at 36. The short-term bear flag pattern will culminate in further lower corrections which could push the price to test the short-term support at $860 and the demand zone at $850.

Read more on Bitcoin Cash price analysis.

BCH/USD 30′ chart