Bitcoin Cash: Path to Recovery or Persistent Downtrend?Bitcoin Cash: Path to Recovery or Persistent Downtrend?
Bitcoin Cash loomed 4.83% in a week, but analysts expect bulls to take over soon.
The low volatility shows stability however decreased volume inflow has been a concern for the bulls.
The recent market downturn has impacted many altcoins, including Bitcoin Cash, a hard fork of Bitcoin. The crypto experienced a significant drop in value in April, just before its halving event, from a high of $700 and is presently valued at $430. Despite this, there's a sense of optimism among investors for a potential rebound.
The daily trading chart reveals a notable pattern; a breakout from this pattern could potentially lead to profits that would reassure investors.
Let's delve into whether this variant of Bitcoin can deliver substantial returns to its investors or if they should consider switching to a more robust-performing asset.
The Low Volume Inflow Has Been A Concern For Investors
Bitcoin Cash seemed to be finding stability at its current market value, with recent sessions showing reduced volatility. Yet, the bulls are troubled by a decline in trading volume. The intraday trading volume was reported at $227.156 million, a 21.20% decrease compared to the previous day's volume.
This downward trend in volume suggests waning investor interest, which could be detrimental to the cryptocurrency's prospects. To reverse the trend, the bulls need to inject additional volume to overpower the bearish momentum.
Will The Correction Continue?
The daily chart highlights that the price was hovering within a descending parallel channel, with the channel's edges acting as its resistance and support levels.
Currently, the cryptocurrency is likely to continue its corrective phase, potentially trading at lower volumes as long as it remains within the channel. A breakout or breakdown from this pattern could signal a definitive trend direction for the cryptocurrency.
From a technical point of view, the BCH crypto is oscillating between the 50-day and 200-day Exponential Moving Averages (EMAs), which are positioned above and below, respectively.
These EMAs could provide dynamic support and resistance. The cryptocurrency's future trend could be determined by a breakout on either side of these EMAs.
Conclusion.
Bitcoin Cash (BCH), a hard Fork of Bitcoin, has been hit by the market's downturn, falling from $700 to $430. Despite the drop, investors remain hopeful for a rebound. The drop in volatility shows crypto stabilizing at the CMP. However, significant drop in the volume inflow indicates the losing interest of the Investors.
The daily chart seems to be locked in a declining channel pattern as of now. The outcome of this phase is uncertain, with potential for either a trend reversal or continued decline, hinging on a breakout from the channel. Bitcoin Cash's fate also lies between the 50-day and 200-day EMAs, which could act as pivotal points for its price trajectory.
