- The Bitcoin Cash-based decentralised finance platform, Detoken, has closed its operations.
- Bitcoin cash is trading with a slight bullish bias at the $659.9 level during the US session, scoring +1.26% so far.
- Forex trading participants may look for a buy trade above the $637 level to the target of $690 and $717.
Bitcoin cash is trading with a slight bullish bias at the $659.9 level during the US session, scoring +1.26% so far. The day before, the BCH/USD closed at $672.82 after posting a high of $787.39 and a low of $587.76. The BCH/USD dropped sharply, just like other cryptocurrencies, following the flash crash in the market driven by the latest EL Salvador’s Bitcoin Law implementation. Bitcoin Cash price prediction is likely to remain bullish above the 637 support level.
After rising for two consecutive sessions to its highest level in three months, BCH/USD fell to its lowest level in one month. Despite following the prevailing flash crash, BCH/USD was also down because of its network’s negative developments.
Betoken operations closure pressures on Bitcoin Cash
On September 4th, the Bitcoin Cash-based decentralised finance platform, Detoken, closed its operations. According to the project’s founder, Semyon Germanovich, several factors influenced their decision to close the Detoken Platform.
The main reason was that it was becoming increasingly apparent that its business model could not work within the changing regulatory outlook of cryptocurrency derivatives.
The Betoken was a project that allowed users to hedge or long their positions in Bitcoin Cash in a noncustodial fashion. The developers’ regulatory concerns forced to shut down of the project on September 4th, which weighed on the BCH/USD prices. Furthermore, the prevailing sell-off market sentiment added further losses to BCH/USD, which dragged its prices towards their one-month lowest level.
El Salvador Updates Cause Massive Drop in Bitcoin Cash
The Bitcoin Law was introduced in El Salvador, which was expected to be positive for the market. However, it turned south when BTC/USD dropped sharply below the $44,000 level on Tuesday. This unexpected massive liquidation of long-positions in BTC turned the whole cryptocurrency market bearish for the day, and BCH/USD also followed the trend.
Meanwhile, the rising prices of the US Dollar Index, which measures the value of the US dollar against a basket of six major currencies, rose to 92.5. Thus, it added further losses in BCH/USD as both have a negative correlation.
Bitcoin Cash Price Prediction –Daily Technical Levels
Support Resistance
577.93 777.56
483.03 882.29
378.30 977.19
Pivot Point: 682.66
Bitcoin Cash Price Prediction – Pair to Test 38.2% Fibonacci Retracement
The Bitcoin Cash Price Prediction is likely to remain bullish above the 637 support level. On the 4-hourly chart, the BNB/USD pair faces trouble disrupting and crossing over the 690 resistance level. A 50% Fibonacci correction level extends this resistance level. However, Bitcoin cash fell after testing the resistance level of 690.
On the bearish side, the pair is likely to gain immediate support around 337 levels. At the same time, the violation of the 337 level is likely to trigger further selling until the next support level of 586.
In the 4-hours timeframe, the 50-period exponential moving average is providing resistance at the $717 level. Since Bitcoin cash is closing below the $717 resistance level, the chances of a bearish correction remain higher today.
On the flip side, the leading technical indicator, stochastic RSI, is holding in the selling zone, which means that the chances of a selling trend remain stronger today.
The forex trading participants may look for a buy trade above the $637 level to reach the target of $690 and $717. Alternatively, selling can be seen below the $717 level with a target of $637. All the best.
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