Bitcoin Cash has had a turbulent past month. The hard fork resulted in two separate networks and therefore two separate cryptocurrencies. This has resulted in the hash rate of the Bitcoin Cash network severely dropping resulting in a far less secure network. Price has severely to reflect this.
Around a week prior to the hard fork, Bitcoin Cash recorded a price above $630. Bitcoin Cash now trades around $100 and has recorded four consecutive daily Doji candles.
A Doji candle is a candle where the open is around the same point as the close. These candles reflect uncertainty from the side of traders and indicate that $100 is an important level for Bitcoin Cash. While the rest of the market had been recording bearish movements followed by a brief weekend recovery over the past four days, Bitcoin Cash continued to stay around $100.
The position of Bitcoin Cash in the cryptocurrency rankings by market cap has also been turbulent. While ranked in the fourth position for much of 2018, it has been overtaken by both Stellar Lumens and the stablecoin USD Tether. It was also briefly overtaken by both EOS and the hard forked network Bitcoin Cash SV.
The outlook for Bitcoin Cash remains bearish as both its price and position in the rankings remain turbulent. Traders are likely unwilling to let price stay below $100 right now, but if the bearish market conditions persist which is likely, a sharp decline below $100 is a strong possibility.
- Turbulent month for Bitcoin Cash which saw its price drop from $630 to $100.
- Four Doji candles formed on the daily chart around $100 indicating this to be an important level for traders.
- If bearish market conditions continue, a sharp decline below $100 is likely.
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