The Bitcoin Cash price has made some modest recovery after it crashed by 46%. Today, the BCH price is at $875, which is 27% above its lowest level last week. The Bitcoin Cash market cap has bounced back to more than $16 billion, making it the 11th biggest digital currency in the world. So, can the currency bounce back to the year-to-date high?
What happened: There was a major crypto sell-off as investors looked for another catalyst. This happened as the previous catalyst, the Coinbase IPO, started to fade. The recovery started during the weekend as many investors started buying the dips. Bitcoin itself has moved from last week’s low of $46,00 to the current $55,000.
Like I wrote yesterday, Litecoin is usually viewed as a proxy for Bitcoin. The same can be said about Bitcoin Cash, which is now trading at $875. This means that 1 BTC can buy 62 Bitcoin Cash. And a 1% increase in the two would mean better results for a BCH holder.
Bitcoin Cash price is rising today because of the overall performance of Bitcoin. BTC, on the other hand, is rising after a large Japanese tech company known as Nexon announced a $100 million BTC acquisition. As such, investors believe that more companies will continue to accumulate the currency.
Bitcoin Cash prediction
Turning to the daily chart, we see that the BCH price has made a modest recovery in the past few days after it formed a double-bottom pattern at $715. Yesterday, the currency moved above the neckline at $840. It remains above 25-day and 50-day moving averages, which are providing a strong dynamic support.
Therefore, in my view, the BCH price will remain in a bullish trend so long as it is above these two moving averages and the important support at $775. A drop below $775 will mean that there are still sellers in the market who are keen to push it lower.