Bitcoin Cash ecosystem advances, but BCH price still risks a breakdown below $200
Since mid-July, Bitcoin Cash has only been able to bounce high enough to test local supply zones before sliding lower.
1alt HD: Cash conference highlights Bitcoin Cash advancements but price action lags
Bitcoin Cash [BCH] saw some notable developments recently. At the Cash 3.0 conference between July 31 and August 2, Paytaca demonstrated a self-custodial NFC payment card.
The conference featured merchant payment terminals alongside applications for payroll, freelancing, and lending, AMBCrypto reported.
Another exciting development was a zk-SNARK shielded pool to improve transaction privacy. Right now, it operates only on Bitcoin Cash’s test network Chipnet, but ongoing development can certainly raise public enthusiasm.
This public interest was not yet evident on the price charts.
Bearish Bitcoin Cash price action shows seller dominance prevails
On the 1-day chart, Bitcoin Cash’s price structure was firmly bearish. The $188 long-term support level was tested in June and defended admirably. The bounce to $250 has been slowly bleeding over the past month.
The CMF saw an uptick over the past week and has climbed back into the neutral area between +0.05 and -0.05. Yet, it does not show sizeable capital flow that could signal a new short-term price trend.
Meanwhile, the RSI was stubbornly below neutral 50 to signal bearish momentum still has a slight edge.
The $250-$280 area is a notable higher timeframe supply zone. To surpass this area, consistent buying pressure is needed. Moreover, the former long-term range low at $272 will also oppose upward price moves.
As things stand, a bearish bias for BCH is warranted.
Traders’ call to action-Wait to sell
A bullish structure was established on the 4-hour timeframe in early July when a former local high at $231.1 [green] was breached. Since making the $255.1 swing high, Bitcoin Cash has been in a retracement phase.
Since mid-July, the altcoin has only been able to bounce high enough to test local supply zones, such as $226 and $220, before falling lower.
Therefore, more of the same is expected. A drop below $200, followed by a retest of that level as resistance, could present a selling opportunity, aligning with the higher-timeframe trend.
Final Summary
- Improved merchant tools and payment infrastructure for Bitcoin Cash gave a hopeful sign to long-term investors.
- These advancements have not translated into heightened buying pressure and short-term price gains.
