On a broader scale, Bitcoin Cash might be hoping to continue the bullish run to touch $550, after which the bulls can now lend their support and take it higher. Even though the digital asset has set sights above, the present momentum in the market is bearish. With the bears seemingly in all markets, Bitcoin Cash’s movement close to its 9 day and 21 day moving averages shows that the asset still has so much work to do to stay up. If this bearish move continues, it is only a matter of time before the digital asset clinches the $500 support zone. Coupled with that, its RSI is still in the bearish zone, with the digital asset presently trading far below the 50 level.
Bulls are tasked with moving the price above $550
As prescribed earlier, the bulls would be tasked with a big part of the job to first defend the asset at $500 before trying to ignite a move upward towards $550. The coin initially registered a convincing move a few days ago, but the sharp drop in its price triggered trader activities which have seen the price fall drastically despite attempts to close in on $563.
With that, the next point of contact that the asset would be looking at is trying to move the asset above both moving averages and trigger a surge to rest above $600. Also, buying pressure could be the thing that will trigger the asset to jump and surge above $600. If the $600 level is attained, then the digital asset could be well on its way to hit the first resistance level at $650. If this happens and there is no pullback, the asset could reach the second and third resistances at $700 and $750.
If the price of the digital asset fails to make an upward surge and goes in the bearish direction, then its first point of contact would be the $500 price mark. If the seller’s activity comes into the market, it could see the price of the asset fall as low as $450. If the bears continue to decimate the market, then the price of the asset could fall to $350 if it goes under the lower channel.
In comparison to Bitcoin, the bears are still in charge of the asset, pushing it below any chance that they get. The analysis shows that this would continue to be the fate of the asset against Bitcoin, except the traders push the price above both moving averages. However, if the asset moves well into the 30 level of the RSI, it could trigger movement into the oversold region. A move above would also see the asset resume a new upward move against Bitcoin.