Bitcoin Cash (BCH) is Preyed by Post Halving Effect & Death Crossover
Bitcoin Cash, a hard fork of Bitcoin that was originated in the year 2017, and it was just in the previous week when the coin had its halving which led the price to soar to $281. BCH/USD hits a 3-week high and briefly traded above $280 on a day before halving on April 08, 2020. The currency gained massively, drawing a bullish crossover of over 12% on April 14, 2020, from the intraday low of $250 to $281. After marking an amazing intraday gain, Bitcoin Cash price has plummeted by double the rate as compared to the intraday gain after the having.
At the time of writing, the coin price is trading at $227, and it has been drawing a slight bullish divergence as the candlestick appears to intraday gainer after hitting 2-week support at $216, yesterday. Moreover, it should be rightly noted that the BCH coin is the fifth largest cryptocurrency in terms of market cap, and the halving has cut the miner reward from 12 BCH per block to 6.25 BCH.
Bitcoin Cash Price Analysis
On the daily chart, Bitcoin Cash experienced the “death crossover” viz., 50-day MA crossed above the 200-day MA after drawing a candlestick above 38.20% Fib Retracement level just to drop again. However, BCH price is also seen drawing a subtle uptrend yet fails to retain support from 50-day and 200-day moving average due to loss of intraday traction. The trading price of Bitcoin Cash against the American Dollar after halving is yet to take a toll and a steady direction to decide the complexity as it draws a bearish yet bullish trendline.
The intraday pullback after halving has been quite notable as the miners cut their profits to half as 12 BCH sliced down to 6.25 BCH. However, as per BCH Prediction, if the price further plummets below $225, it is likely to retest the monthly support at $210. Simultaneously, the major resistance level to watch out for lies at $230 for a scare-free intraday.
The technicals have also drawn a supportive picture as the MACD appears bullish by crossing above the signal line yet seems to diminish the gains due to intraday loss of momentum. The RSI of Bitcoin Cash lies at 46.05 and withholds no trading extremities due to directionless trade and market volatility.