The cryptocurrency market is advancing this trading week; Bitcoin continued its surge and reached a new all-time high above $58,000. This situation also supports Bitcoin Cash’s price, and in less than three weeks, the price of BCH has advanced from $390 above $700.
Fundamental analysis: Many analysts warn of an ‘epic’ bubble around the cryptocurrency market
February has been a very positive month for the cryptocurrency market so far – Ethereum, Bitcoin, and Bitcoin Cash are leading this trend, and for now, there is no risk of the trend reversal. Bitcoin Cash was one of the best performers on the cryptocurrency market in the last several weeks, and as long the price is above $600, it remains in a buy zone.
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The daily volume of Bitcoin Cash (BCH) continues to rise, and the price of this cryptocurrency could advance even more in the ongoing bull market. Despite this, the risk remains very high, and many analysts warn of an ‘epic’ bubble around the cryptocurrency market.
Several laureates of the Nobel Memorial Prize in Economic Sciences, central bankers, and investors predict the collapse of a speculative bubble in cryptocurrencies. “Watching the cryptos trade, it’s exactly like the internet stock bubble of the early 2000s, which was caused by speculation in unproven internet stocks,” said billionaire Mark Cuban
Bitcoin Cash broke off from the original Bitcoin network on 1 August 2017 and has rapidly become one of the most valuable cryptocurrencies globally. Bitcoin Cash has lower fees than Bitcoin and allows more transactions to be processed because of increased block size i.e. 8 MB.
According to the latest news, the popular crypto exchange OKCoin announced that it would delist Bitcoin Cash (BCH) and Bitcoin SV (BSV). The CEO of OKCoin said that the main reason for this decision is Bitcoin’s ecosystem’s best interest, and the exchange is frequently exploring which coins it should keep and which it should remove as part of its developing system.
Technical analysis: Bitcoin Cash could advance even more, but the risk remains high
Bitcoin Cash has advanced from $332 above $770 since the beginning of January, and the current price stands around $700. Still, if you decide to trade this cryptocurrency, you should consider that the price could also weaken in the upcoming days.
The important resistance levels are $750 and $800; $650 and $600 represent strong support levels. If the price jumps above $750, it would be a signal to buy Bitcoin Cash, and the next price target could be around $800. On the other side, if the price falls below the $600 support level, it would be a firm “sell” signal and possibly a trend reversal sign.
Bitcoin Cash price is advancing since the beginning of the year, and for now, there is no trend reversal sign. If the price jumps above $750, the next price target could be around $800, but if the price falls below the $600 support level, it would be a firm “sell” signal.