Bitcoin Cash continues the recovery after the steep drop of last weekend. However, the momentum remains light, and the recovery remains slow, as the price lies around the 28 September low at $471.
The rally follows Bitcoin, whose prices Bitcoin Cash tracks positively in a correlated fashion as a BTC-forked asset. It has emerged that whales purchased $3.3billion worth of Bitcoin, according to data from Santiment. Other major players such as the El Salvadorian government also bought the recent dip, generating some demand on the BTC-correlated assets this Tuesday.
Bitcoin Cash is up 1.71% as of writing, adding to Monday’s 4.81% gain.
The previous two daily closes above 444.3 (27 June/25 July low) preserve this level as the price pivot. This provides the impetus for the bulls to make a run towards the 535.9 resistance level. 603.1 and 652.1 are candidates for additional barriers to the north that enter the picture if the recovery continues.
On the other hand, failure to generate the required momentum to sustain the recovery puts 444.3 under pressure. If the bulls fail to defend 444.3, then the 22 June/20 July lows at 383.2 enter the mix as the additional support mark. The 4 December low at 350.0 is expected to be a potential pitstop before 325.2 becomes an extra pivot.