- BCH has lost 35% from the recent peak.
- The critical support lies at $125.00.
Bitcoin Cash (BCH) slipped under $150 level to trade at $149.60 by the time of writing. The fourth largest digital coin with a market value of $2.6B has lost nearly 10% since this time on Thursday but managed to recover some losses during Asian hours. BCH/USD topped out at $231.31 on December 21 and lost over 35% since that time. The sell-off was caused by a technical correction after a strong rally and overall bearish sentiments that gripped the market during Christmas holidays.
BCH/USD, the technical picture
From the short-term point of view, BCH/USD is supported by SMA200 at $140.80 and SMA100 at $135.70; however, it has a recovery potential as long as it stays above the congestion zone $125.00. This area served as a jumping off the ground for BCH on December 20 and may provide support this time. Once it is broken, the sell-off will gain traction with the next aim at psychological $120.00 and $110-$100.
On the upside, we will need to reclaim $150.00 and $170.00 strengthened by SMA50 (4-hour). This resistance must be cleared for the price to continue moving upwards towards psychological $200 and to the recent high at $231.31.
As the momentum indicator points to the North and the RSI also attempts a reversal, the short-term bullish forecast looks viable. Though, sustainable growth is hardly possible without a global sentiment change on the cryptocurrency market. Considering low liquidity and reduced trading activity during the holiday season, BCH may be vulnerable to volatile movements.
BCH/USD, 4-hour
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