What are the prospects for a Bitcoin Cash recovery in the current cryptocurrency market? Bitcoin Cash (BCH), a popular cryptocurrency, recently experienced a significant drop, falling below the $200 mark. This was a two-month low not seen since June, reflecting a bearish trend in the derivatives market at the time.
Recent Market Performance
The crypto market witnessed a slump last week (14 – 20 August), with most assets posting double-digit losses. Bitcoin (BTC), for instance, dropped by 11% according to CoinMarketCap’s seven-day performance. However, Bitcoin Cash fared worse, plunging 18% over the same period.
Despite this, there was a positive price reaction near $180. But a significant challenge lies ahead, as BCH must clear the recent lower low at $200. The currency has been making lower lows since July, reflecting the altcoin’s downtrend in the third quarter.
Overcoming Market Obstacles
For a successful Bitcoin Cash recovery, bulls must overcome the $200 and $222 hurdles to reverse the recent losses. However, this could be further delayed due to BTC’s struggle to maintain hold of $26k. On the other hand, if BTC’s weakening continues, sellers could potentially push BCH lower to $158.
The On Balance Volume (OBV) improved, indicating increased demand. However, the Chaikin Money Flow (CMF) stalled at the zero mark, suggesting eased capital inflows. Additionally, the Relative Strength Index retreated from the oversold zone, indicating increased buying pressure, but it has yet to cross above the 50-mark to confirm additional buyers’ leverage.
Future Market Trends
The bearish grip seen last week still holds in the futures market. For instance, the Open Interest rates fell from over $280 million to less than $200 million between 15 – 18 August. This denotes a decline in demand followed by stagnation. The Cumulative Volume Delta (CVD) also declined, and funding rates were negative, demonstrating the sellers’ edge and bearish bias in the derivatives market.
While the market conditions may seem challenging, they offer an opportunity to closely monitor the trends and make informed decisions. A tool like cryptoview.io can be invaluable in this regard, providing real-time updates and insights into the cryptocurrency market.
