The Bitcoin Cash price is down by a percentage point in today’s trading session. The drop also marks the second consecutive day that the crypto has fallen in the markets in the past ten days. Before yesterday and today, the Bitcoin cash price had surged by 33 per cent after a 7-day bullish push.
Part of the reason we may be seeing the current drop is the drop in trading volume. In the past 24 hours, it has dropped by 28 per cent to $353 million worth of Bitcoin cash transactions. The past 24 hours have also seen the general trend of the cryptocurrency industry change, with its global market cap falling by 3 per cent.
Bitcoin Cash, being positively correlated with the industry’s general trend, looks to be following the bigger trend. The trend has also been the same for the main Bitcoin, which has lost 2.4 per cent in the past 24 hours. Bitcoin Cash, being a fork of Bitcoin, also follows its trend. Hence, the current drop in Bitcoin has also seen Bitcoin Cash’s price fall.
Bitcoin Cash Price Prediction
Looking at the chart below, the long-term trend still looks very bearish despite going for seven consecutive days in a bullish trend. Therefore, the drop in price yesterday and today is unsurprising and could mean the Bitcoin cash price is resuming its long-term trend.
There is also another possibility that the current drop is only a price correction after the latest price surge and that the price will pick up where it left off in the next few trading sessions. Whatever the case, the current bearish trend will persist for the next few trading sessions. This is why I expect the prices to at least hit the $108 support level in the coming session.
There is also a high likelihood we may see prices continue trending downwards at the $96 long-term support level. This is especially true if the current drop is a continuation of the long-term bearish trend. My analysis will be invalidated should the prices rise and trade above yesterday’s price high of $131.