Bitcoin Cash continues to trade in the red zone, which is the same thing that is happening all over the crypto market. Leading the charge, Bitcoin has posted double-digit losses after seeing a massive gain to post a price of above $58,000. At present, Bitcoin is trading close to $50,000 while other digital assets, including Bitcoin Cash, are still in the red.
Even though Bitcoin Cash is trading close to its moving averages, the digital asset is primed to go under in the next couple of days if investors don’t pull their weights behind it. If it eventually goes under, there is a high chance that it would touch its support level at $500.
The bulls could push the price to $900
Taking a look at its Relative Strength Index, the digital asset also shows bearish signs, which can be confirmed by its trade above the 60 level. Going by the on-chain analysis, the bulls would not have any chance against the bears at this current price, and they can only uphold the price at $450. If they are successful, they will then try to drag it close to $500 with the backing of traders.
Despite the promise that the asset showed some days back after trading sideways, the digital is trying to return to $750. But as it stands now, the bulls are hoping to take the price above both moving averages and trigger a return to the previous price of $700. The coin is now in the negatives following the decline, and a push in the opposite directions could see it stabilize above $650.
If that happens, only buying pressure would trigger a further bullish run to trade close to its previous region. If the bullish run continues and is sustained, the digital asset could sell at $800. A further bull action coupled with the trader’s push would see it move close to the $850 region before touching the $900 price region.
If the coin refuses to move out of the negative region, it could trigger a bearish run that would see it trade at $450. If the bulls refuse to defend this position, the digital asset could go way below and trade at $400 before moving to $350. In comparison to Bitcoin, the digital asset is still trading in the bearish zone.
This could continue if the traders fail to react and push the asset well above the moving averages. If the technical indicator moves under, it could trade under the 45 level, and a bearish run could push the price way below.