The situation for digital assets is never predictable, mainly because of the several factors that influence pricing and stability. Unlike Bitcoin that keeps falling below its peak, other digital assets are working things nicely since last week’s price crash, wipe out significant dollars from the new year’s gains. Since mid-December, cryptocurrencies gained at structured speed before hitting January, and every digital asset gained immensely.
For most assets, bears are finally cutting down the selling pressure. Unfortunately for Bitcoin, the sell-offs continue. Experts suggest that only significant buying pressure and scarcity would give the cryptos a boost to return to their previous positions. Not surprisingly, Bitcoin Cash faces some challenges of its own with new price rejection that took the asset to below the $450 mark.
BCH fails to take $500 as it falls after price rejection
The price rejects at the price range, which led to its drop to below $450 on numerous trading platforms. There are some significant points investors need to understand, with the main resistance point being around $600, $620, and $640. On the other hand, the asset’s support levels hold $350, $330, and $310.
Based on statistics, the asset is moving downward slope and could signal future corrections. Experts opine that the selling pressure necessitated the slight corrections most coins are facing at this time. But the crypto has to have some upward movement to prevent more slide down the charts that could hurt investors than its present situation.
There is still hope for the asset if it goes up in charts, which would mean lesser sell-offs, that would allow market bulls to drive up the price within some time. The market bulls are the digital asset’s only hope to overcome its next challenge: the $600 mark resistance point preventing it from recording a new high. Unfortunately, the bull action might not be likely since it seems bears are gaining momentum to drag down the price. The moving averages could help the digital asset move upwards while still holding reliable support in the $300 price mark.
Comparing BTC to BCH
When looking at their charts, both of them could want a breakout and change from its usual movement. Selling pressure from BTC is stopping the crypto giant from attaining a new high because many traders want to have a share of the new year’s profits. The asset saw a short-term gain after the price crash to around $37,000, before recording recent losses daily. Interestingly, ETH and BTC are a lot closer to their all-time highs than other assets, which means that investors could leave the expensive investments for smaller ones like BCH.
Long-term investors have to keep the bullish trend strong to record any significant return. At this period, the digital asset struggles to stabilize due to the market structure and constant sell-offs. Usually, individuals in the crypto space blamed miners for value drop, but now, we see that traders are the biggest cause of the price corrections. JP Morgan analysts also advised that Bitcoin could record new gains with higher volumes through Grayscale.