Bitcoin cash looks set for a gravity-defying move upwards.
Data source CoinMarketCap shows the world's fourth largest cryptocurrency by market capitalization rose as high as $2,961 yesterday before closing the day (as per UTC) at $2,895.38.
However, prices dipped to a low of $2,396 at 04:34 UTC, possibly in response to reports that South Korea – one of the world's largest cryptocurrency markets – is considering an outright ban on cryptocurrency trading.
As of writing, bitcoin cash (BCH) is trading back up at $2,670 levels – up 5.57 percent in the last 24 hours. Also, BCH is bucking the broader market trend. As per CoinMarketCap, bitcoin has depreciated by 2 percent in the last 24 hours. Meanwhile, ethereum and Ripple are down at least 9 percent each.
In further good news for bulls, the technical charts indicate BCH could extend the 11.76 percent rise from the intraday low further towards $3,000 levels.
Bitcoin cash chart
The above chart (prices as per Bitfinex) shows:
- A series of higher lows as represented by the rising trend line.
- A rounding bottom (lower lows followed by higher lows), indicating the bears have lost control.
- Bullish (upward sloping) 50-day moving average.
- Congestion ended with an upside break yesterday, adding credence to the above bullish factors and indicating scope for a move above the $3,000 mark.
Today's price drop need not be interpreted as a sign of "failed bullish breakout" as markets usually shake out weak hands (traders with tight stops/ less risk tolerance) after a big bullish/bearish move.
- BCH looks set to test $3,000 levels and possibly extend gains to $3,500–$3,600 levels over the next one week.
- Only a close (as per UTC) below $2,050 (Dec. 30) would neutralize the bullish view put forward by the rounding bottom formation.
Roller coaster image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.