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Bitcoin Cash recovery faces a hurdle at $222

2min Read

Bitcoin Cash recovery hangs in the balance as bearish pressure persist in the futures market.

Bitcoin Cash recovery faces a hurdle at $222

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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

Bitcoin Cash price analysis

Source: BCH/USDT on TradingView

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

Source: Coinalyze

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. 

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Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
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