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Crypto Update: Bitcoin Cash testing long-term support

Published: 07.01.2022
by Joseph Jeffriess

We can see how the price of Bitcoin Cash has now returned to its long-term support area. Could we see a new break lower or can buyers maintain the level? 

This week continues to be a very average week for crypto markets. Sellers continue to rule momentum pushing most markets lower. ETH has been hit rather hard dropping 17% so far this week. Is there writing on the wall for the current uptrend?

Back to today’s today’s topic, we can see sellers have pushed Bitcoin Cash back to key support. Currently, we’re seeing sellers just edge below 384. This could become significant as this level has held for buyers since Jan 2021. If sellers can complete the breakout we could be looking for price to potentially move back to 265 and if selling really took off possibly the 185 which is the next level lower. That’s a bit of an ask as that would suggest the entire 20/21 trend would be retraced.

Buyers could be looking for new opportunities to develop from support holds but they would want to be sure as currently seller momentum is rather thick. Double bottoms with trend breaks could be decent starting points to start telling us momentum could be changing.

Bitcoin Cash D1 Chart

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