Bitcoin Cash recovery faces a hurdle at $222
Bitcoin Cash recovery hangs in the balance as bearish pressure persist in the futures market.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- BCH dropped below $200; a two-month low last seen in June.
- The derivatives side was firmly bearish at the time of publication.
Last week’s (14 – 20 August) crypto slump eased over the weekend. Most assets posted double-digit losses over the past week. In particular, Bitcoin [BTC] dropped by 11% per CoinMarketCap’s seven-day performance. Bitcoin Cash [BCH] plunged 18% over the same period.
Is your portfolio green? Check out the BCH Profit Calculator
BCH’s drop saw it breach below the $200 psychological level; a two-month low last seen in June. But there was a positive price reaction near $180, but a crucial roadblock lies ahead.
BCH fails to clear the recent lower low at $200
BCH has been making lower lows since July, capturing the altcoin’s downtrend in Q3. But it was worth noting that the previous support zone of $221 – $235 eased the drop for a while. The support cracked on 16 August, tipping sellers to extend gains below $200.
The drop eased to $180, but a recovery attempt was thwarted at $200. So, bulls must clear the $200 and $222 roadblocks to continue reversing the recent losses. But BTC struggled to keep hold of $26k, which could further delay BCH bulls from clearing the overhead hurdles.
Conversely, sellers could push BCH lower to $158 if BTC’s weakening persists.
Meanwhile, the On Balance Volume (OBV) improved, indicating increased demand. But the CMF (Chaikin Money Flow) stalled the zero mark; denoting eased capital inflows.
Besides, the Relative Strength Index retreated from the oversold zone, indicating increased buying pressure. But it was yet to cross above the 50-mark to confirm extra buyers’ leverage.
Realistic or not, here’s BCH’s market cap in BTC terms
The bearish grip on the futures market
The bearish grip seen last week was still prevalent in the futures market at the time of writing. For example, the Open Interest rates fell from over $280 million to <$200 million between 15 – 18 August. After that, it was flat, denoting a decline in demand followed by stagnation.
Similarly, the CVD (Cumulative Volume Delta) declined, and funding rates were negative, demonstrating the sellers’ edge and bearish bias in the derivatives market.
