Bitcoin Cash started the month of December with a downtrend. When we look at the December balance sheet, we see the loss of value of BCH exceeding 13 percent. We evaluated the critical levels of BCH / USDT in our December 14 altcoin analysis.
Bitcoin Cash failed to break the $ 295 resistance in its recovery efforts after seeing sharp drops in the first week of December. Although there were attacks of more than $ 300 in the upward direction, when there were not enough buyers to continue the upward trend, we witnessed the declining movements of altcoin towards the $ 250 band.
Bitcoin Cash, which consolidated at an average of $ 260 on weekdays, closed the week above $ 275 with a gain in value of over 6 percent, accompanied by the positive trend seen in the market over the weekend. On the other hand, the rise over the weekend made it an extremely important step for BCH. Altcoin, which fell with a steep momentum in December, gave the impression that it broke this downward trend with the price increase over the weekend.
Daily Chart of BCH/USDT
Looking at the last peak ($ 317) and the last low ($ 256), we see that BCH closed the week at a critical price. Today, $ 278, which is an important resistance price, will coincide with the Fib 0.318, and the possibility of BCH / USDT to increase its gains will increase if it breaks. In the bullish scenario, $ 285 and a harder resistance at $ 292 could be followed. In case of continuation of the upward trend, a move towards 305 and 320 dollars can be seen.
When we look at the decline scenario, the selling pressure for BCH, which can remain below $ 278 today, will increase. This will be perceived as a limited recovery of the downtrend, with a drop of up to $ 240 after an average $ 255 breakdown.
Bitcoin Cash, which has a high correlation with the Bitcoin price, can be expected to act in line with the BTC price action. On the other hand, in its daily view, the stochastic RSI turning north with the last jump and leaving the oversold zone can be perceived as a bullish signal. As a result, it can be said that the average price range of 278 – 280 dollars will be critical for the direction of BCH / USDT.