- Bitcoin Cash, like the majority of the cryptocurrencies, has broken below lifesaving support areas as the market continues to explore new 2018 lows.
- A drop below the triangle support could intensify further declines towards $450.
The crypto market is stabilizing at the moment following another round of declines that dominated the digital assets on over the weekend. Bitcoin Cash, like the majority of the cryptocurrencies, has broken below lifesaving support areas as the market continues to explore new 2018 lows. Last week, Thomas Lee of Fundstrat released statistics that showed that at least 97% of the altcoins in the market have shed off 70% of their all-time high value recorded at the end of last year and in January this year. While the results show that a tactical rally based on past performance was due, the market is yet to start experiencing any significant recovery from the paralyzing lows that occurred in the mid-last week and over the last weekend.
Bitcoin Cash rejected the support at $500 explored on Friday last week. Significantly, the movement to the south was unstoppable at $477 (August lows and support). A short-term support was established at $470 but gave in to the selling pressure as the price headed straight to $460, instead forming a low $461. There has been a pullback above $490 but $500 remains out of reach, for now. In fact, BCH/USD is trading at $479 at the moment. It is also inside a contracting triangle and approaching a breakout.
The initial resistance is the 38.2% Fib level taken between the last swing high of $504.98 and a swing low of $463.71. A couple of more hurdles exist at the 50SMA at $480.93 and the 100SMA at $483.48, both on the 15-minutes chart. The upper supply zone at $492 will limit gains towards the ultimate resistance at $500. On the other hand, a drop below the triangle support could intensify further declines towards $450.
BCH/USD 15-minutes chart
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