For the past two weeks, Bitcoin Cash has followed in the footsteps of the leading coins in decline. The coin is now looking quite bearish even though it has managed to make up for some of the losses this week. However, the downside pressure is likely to continue in the coming weeks as sentiment in the broader market struggles to gain momentum. Below are the major BCH highlights:
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Bitcoin Cash has blocked a downside break today with a slight uptrend.
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But there’s no real prospect of a sustained uptrend
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BCH may trend lower and eventually lose $100 support
Data Source: TradingView
Why is it important to hold $100?
BCH faced a lot of pressure in 2022. But the coin still managed to stay above $100 throughout the year. This is an important psychological barrier. This shows the resilience of BCH to face wider market pressures. But for the first time in 2022, there is a real risk that BCH may eventually fail to sustain the $100 mark.
In fact, at the time of writing, the coin was trading at around $120. This was after a modest 24-hour gain of around 3%. BCH is dangerously close to $100. It only needs a drop of 20% for it to fall into double digits.
For a coin that has already fallen 22% in the past 7 days, another 20% drop is more likely than you think. Nevertheless, once there is a break above $100, BCH is expected to drop to $80 before finding support.
Why is BCH falling?
The downtrend that BCH has seen is no different from the coin alone. In fact, we haven’t noticed any major change in the fundamentals of the coin here. The decline is mainly due to economic and monetary factors in the global economy.
Sadly, these difficult economic conditions will not ease anytime soon. Therefore, BCH investors should be prepared for a continuous bearish season.