Bitcoin Cash has been retracing over the past two days after a movement which saw the fourth largest cryptocurrency by market cap increase in price almost 50%. The large price increase was spurred by announcements from exchanges that they would be supporting the upcoming hard fork of Bitcoin Cash and holders would receive the new forked coin at a 1:1 ratio. Buyers rushed to the market in anticipation of the forked coin being valuable resulting in the large spike in the price we have seen for Bitcoin Cash.
The price of Bitcoin Cash has since retraced from its recent high around $630 to trading at $590 today. Yesterdays drop was on significant volume showing there could be the real strength behind the move and that there is still significant trading activity in the cryptocurrency.
If the price of Bitcoin Cash does not drop below near the $550 point, it could be forming a higher low and set up for the next wave of buying. If it drops below this point, it will be a far more bearish situation, and the price could continue to drop to around $500 where the 50 EMA is trading.
- Bitcoin Cash has surged almost 50% after announcements from exchanges that it will be supporting the upcoming hard fork. This has resulted in buyers rushing into the market to position themselves to receive the hard fork in a 1:1 ratio.
- Price has since started to retrace. If it does not drop below $550, it could be pricing in a higher low and set up for the next wave of buyers.
- 50 EMA is trading around $500 and may provide support if Bitcoin Cash continues its decline below $550.
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