Bitcoin Cash may well head to $640 or $630 soon, as there’s a new bearish trend line at $690.
The crypto is trading at $662, having already tested the local low at $645 and then pulled back. The cryptocurrency is under pressure, according to Dmitriy Gurkovskiy, Chief Analyst at RoboForex.
He portends Bitcoin Cash is unlikely to stay long near $700. In case the sellers remain active, it will soon reach $630. Losses are already high, investors say, which could be clearly seen after BCH went below $665. In theory, the price may fall till $620 after testing the range between $630 and $640.
$630 is the key support level for BCH, while the resistance is at $690. The MACD on D1 is moving along in the negative area and is going down, thus confirming a sell signal. The Stochastic is issuing the same signal, too, while heading down in the positives and ready to plunge into the negative territory.
There’s a lot of interesting news for Bitcoin Cash this week. First, Purse, which enables Bitcoin payments on Amazon, added BCH to its portfolio. Purse is, in fact, an intermediary service between those who own goods and want to get crypto for them, and vice versa. It is extremely easy to use, which means a lot of new users will be testing and using it soon.
Another piece of news relates to BitPico, a group is going to test the Bitcoin Cash network. The developers are expected to test around 51% of all issued coins. The test is likely to simulate an attack that will last for a few months.
This is going to become a real stress test for the network performed by both third-party companies and regular users. BCH had such tests previously, done by some fans, but at BitPico, they think such tests were too smooth and centralized. Moreover, they are willing to create a new fork called bitPicoCash, and are ready to start working on it shortly.
As for the negative fundamentals, the suspension of Huobi Pro in Japan may put BCH at risk. Huobi Pro is quite a large exchange that still was unable to get licensed in the country. The suspension will be effective since July.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice.
Featured image from Shutterstock.