Bitcoin Cash continues to trade above the $100 price level, with today’s trading session extending the bullish trend of the past two days. However, the long-term price action of the trend continues to show signs that Bitcoin Cash is still in a long-term bearish trend, and the recent price gains are likely due to price retracement before another aggressive bearish move.
What has been happening to Bitcoin Cash?
In recent months, Bitcoin Cash has faced challenging market conditions, with the token’s price falling to a year-low at the end of 2022. Part of the reason for this decline was the overall bear market in the cryptocurrency market, along with negative factors such as the collapse of FTX exchange, which played a significant role in investors’ sentiments toward the crypto market and resulted in an industry-wide bear market.
Bitcoin Cash also suffered due to its correlation with Bitcoin, which most investors now believe is being heavily impacted by institutional investors who continue to accumulate the asset. On one hand, accumulation has been seen by some of its investors as positive, with many believing that such a huge investment is likely to drive the its price up. However, on the other hand, whales dumping their Bitcoin asset, as seen last year during the FTX crypto exchange collapse, will have a negative impact on Bitcoin Cash and result in the crypto going into an aggressive bearish trend.
Another factor that is likely impacting Bitcoin Cash’s performance negatively is the events of last year, including the collapse of Luna, Three Arrows Capital (3AC), and FTX crypto exchange, which triggered a strong industry-wide bear market. Therefore, many investors, including institutional investors, have become extremely cautious about investing in projects such as Bitcoin Cash, which has seen a significant drop in the trading volume of these digital assets and an overall drop in the markets.
Bitcoin Cash forecast
Unfortunately, in 2023, all these factors are likely to play significant roles at varying degrees in Bitcoin Cash’s performance for the year. Therefore, we are likely to see Bitcoin Cash resuming its long-term bearish trend. We are also likely to see it dropping below the $100 price level and possibly trading below $90 in the coming weeks.
Therefore, for the next few trading sessions, I still remain bearish on the crypto and expect the current bullish trend to end soon. I also expect prices to drop below the $100 price level soon, with a high likelihood of also dropping below $90. However, a trade above $110 will invalidate my bearish analysis.