For the past two weeks, Bitcoin Cash has followed in the footsteps of declining major coins. The coin now looks distinctly bearish even though it managed to recoup some of the losses this week. However, the downward pressure will likely continue over the coming weeks as sentiment in the broader market struggles to find momentum. Below are the main highlights of BCH:
Bitcoin Cash halted the decline on the downside with a modest gain today.
But there is no real chance of a sustained bull run
BCH will likely trend lower and eventually lose the $100 support
Data Source: TradingView
Why holding a $100 is key?
BCH faced a lot of pressure in 2022. But the coin still managed to stay above $100 all year. It is an important psychological barrier. This shows BCH’s resilience in the face of market-wide pressures. But for the first time in 2022, there is a real risk that BCH will ultimately fail to hold the $100 mark.
In fact, at the time of writing, the coin is trading at around $120. This was after a modest gain of around 3% over 24 hours. BCH is dangerously close to $100. It only takes a 20% drop to drop into double digits.
For a coin that has already fallen 22% in the past 7 days, another 20% drop is more likely than you might think. Nonetheless, once $100 is breached, expect BCH to fall further towards $80 before finding support.
Why is BCH falling?
The downtrend seen by BCH is not isolated to the single coin. In fact, we haven’t seen any major changes in the fundamentals of the coin here. The fall is largely caused by economic and monetary factors in the global economy.
Unfortunately, these difficult economic conditions will not ease any time soon. As such, BCH investors should be prepared for a consistent bear season.