Bitcoin is the world’s largest cryptocurrency, and it handles billions of transactions. However, as it gains popularity, the network takes longer for transactions. Besides that, the cost of transactions is on the higher side. To improve all these issues, Bitcoin Cash was released in 2017.
The technology is very similar, having the same amount of coins, i.e., 21 million. Anyone who held Bitcoin on the day automatically received Bitcoin Cash at a ratio of 1:1.
It is just like Bitcoin but with much faster transactions and lower transaction fees. As it is a new coin, merchants are not accepting it currently, but it will be a mainstream payment method in the future.
At the time of writing this analysis, it is trending at a price of $367.73. Overall, the price chart is bearish, and we are going to analyze it with technical tools.
As you can notice, $420 was the support level, but it has broken it, so it is hard to assume the next support level from the daily chart. RSI is around 30, which is in the oversold zone. The MACD is also bearish.
On the Bollinger Band, the candlesticks are forming in the lower half and reflect strong bearishness.
$700 is the resistance level on the weekly chart, and $200 is the next support level. However, the trend is not bullish even in the weekly chart; it shows long-term bearishness.
After the price crash on May 19 last year, it did not come back strongly. It made an ATH of $4270, and now it is trading around $350. Think about investors who brought it around the price of $4000! That is why traders should do research before investing in cryptocurrency.
It is not the ideal time to invest in this coin; though it is a superior version of Bitcoin with better efficiency, faster transactions, and lower fees, still it has been bearish for the last few months.
We would not recommend investing in this coin as of now. However, if you have stuck with a higher price level, then please hold the coin for a few more years. A few good news in the market will bring back its lost value, and the Bitcoin Cash will start a bullish run.
