The Bitcoin Cash price has been in a tight range in the past few trading sessions as investors question the next moves in cryptocurrencies. The BCH price is trading at $685, which is about 46% above its lowest level in May.
Risks for Bitcoin: Bitcoin and Bitcoin Cash have a relatively strong correlation because of their similar heritage. Bitcoin Cash was formed after the hard fork of Bitcoin a few years ago. Today, most of the Bitcoin Cash in existence is bought by investors who want exposure to Bitcoin. This is because BCH is usually cheaper than BTC.
Today, Bitcoin and other cryptocurrencies are facing significant risks as the number of ransomware attacks increase. In May, Russian hackers managed to bring down the Colonial Pipeline in the United States. And yesterday, they managed to halt meat processing at the biggest beef and pork company in the United States.
Therefore, there are concerns that the Biden administration could place more regulatory measures to curtail the currencies. As you may recall, this was a major call that Janet Yellen made during her confirmation hearings. In a recent commentary in the Wall Street Journal, a writer said:
“It isn’t obvious that cryptocurrency provides any benefit at all beyond the chance to make a quick buck. I have been studying the crypto market since its inception, and I have yet to identify a single task or process that crypto makes easier, better, cheaper or faster.”
Bitcoin Cash price prediction
On the four-hour chart, we see that the BCH price has been in a tight range recently. Along the way, the price has formed a triangle pattern that is shown in red. It has also moved below the 25-day and 15-day moving averages. It is worth noting that this triangle pattern happened after the currency experienced a sharp drop. Therefore, it could be said to be a bearish pennant pattern.
Therefore, while it is too early to tell, there is a possibility that the currency will soon break out lower since the triangle pattern is nearing its confluence zone. However, a move above the resistance at $808 will invalidate this trend.
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BCH price chart
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