Bitcoin Cash (BCH) has advanced more than 20% since March 11, advancing from a low of $108.13 to a high of $138.19. The current Bitcoin Cash (BCH) price stands at $133.93, and despite the recent correction, bulls still control the price movement.
Today, Crypto Lists will discuss Bitcoin Cash (BCH) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Market cap up by more than 25%
- 2 JPMorgan reaffirs negative outlook
- 3 Technical analysis for Bitcoin Cash (BCH)
- 4 Important support & resistance levels for Bitcoin Cash (BCH)
- 5 What speaks for the rise in the Bitcoin Cash (BCH) price
- 6 What indicates the downfall of Bitcoin Cash (BCH)
- 7 What do analysts and experts say?
Market cap up by more than 25%
The cryptocurrency market experienced sharp volatility this week as the collapse of Silicon Valley Bank, and peer Signature Bank raised hopes among investors that the U.S. Federal Reserve could announce a smaller interest rate hike or even a pause at its upcoming monetary policy committee meeting. The total crypto market capitalization increased by more than 25% in seven days, reaching $1.16 trillion on March 17, and according to some analysts, the ongoing macroeconomic uncertainties would likely drive further interest in the crypto space.
At the same time, the Consumer Price Index (CPI) showed that inflation in the United States cooled in February, which also bolstered expectations for a smaller rate hike. Another positive information for the cryptocurrency market comes from Bloomberg analyst Mike McGlone who said that Bitcoin is likely to trade like the U.S. treasury bond as a result of the numerous banking issues that have plagued the traditional market.
This information gave an even more bullish incentive for the price of many cryptocurrencies, and Bloomberg analyst Mike McGlone also said that many cryptocurrencies have started to see as a safe-haven asset in the face of the recession.
Robert Kiyosaki, the prominent investor and a popular author of the book “Rich Dad, Poor Dad” believes the global financial crisis is getting worse caused by the crash in the banking sphere and recommended buying cryptocurrencies, silver, and physical gold as an antidote to the current crisis unfolding in the financial sphere.
JPMorgan reaffirs negative outlook
After spending several days trapped around $110, Bitcoin Cash’s price finally escaped the range and broke out toward the upside. Bitcoin Cash advanced again above $130 and even poked above $138 before retracing a bit to where it currently trades. Macroeconomist and trader Henrik Zeberg said that as long as the U.S. economy is not in a recession, the prices of Bitcoin Cash and other cryptocurrencies will continue to be supported.
Despite this, investors should continue to take a defensive investment approach as the effect of the 2022 crypto price crash, U.S. inflation growth, and interest rate hikes haven’t diminished from the market yet. JPMorgan, one of the world’s largest investment banks, has reaffirmed its negative outlook on the cryptocurrency market in a recent report after Silvergate Bank disclosed plans to wind down operations and voluntarily liquidate.
JPMorgan expressed its concerns and claimed that this is “another setback for the crypto ecosystem” because replacing the instantaneous network for processing dollar deposits and withdrawals will be a difficult task. The bank also highlights the reversal in the CME futures spread, which is indicative of a deterioration in demand. According to JPMorgan, this could be interpreted as a signal that investors are less confident in the future of cryptocurrency.
Technical analysis for Bitcoin Cash (BCH)
Bitcoin Cash (BCH) has advanced more than 20% since March 11, 2023, rising from $108.13 to a high of $138.19. Bitcoin Cash’s current price stands at $133.93, and despite the recent correction, bulls still control the price movement. As long the price of BCH is above $120, we can’t talk about a trend reversal, and the price of this crypto remains in the BUY-ZONE.
Important support & resistance levels for Bitcoin Cash (BCH)
On this chart (the period from June 2022), I marked important support and resistance levels that can help traders to understand where the price could move. Bitcoin Cash (BCH) remains in the “BUY ZONE” for now, and if the price advances above $140, the next target could be resistance that stands at $150.
The important support level is $120, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $100. If the price drops below $100, which represents very strong support, the next target could be located around $90 or even below.
What speaks for the rise in the Bitcoin Cash (BCH) price
The amount of BCH traded over the last several days saw a significant increase, and if the price advances above $140, the next target could be resistance at $150. Traders are buying BCH after the banking crisis caused the sentiment that many cryptocurrencies are starting to see as safe-haven assets.
The latest economic numbers from the United States also boosted positive asset sentiment and raised hopes among investors that the U.S. Federal Reserve could announce a smaller interest rate hike or even a pause at its upcoming monetary policy committee meeting. According to the technical picture, Bitcoin Cash (BCH) still has room for the upside, especially if the price of Bitcoin continues to perform well.
What indicates the downfall of Bitcoin Cash (BCH)
This trading week has been very successful for Bitcoin Cash, but investors should continue to take a defensive investment approach as the macroeconomic landscape remains uncertain. The important support level for BCH stands at $120, and if the price falls below this level, the next target could be $100. The price of BCH is also correlated with the price of Bitcoin, and if the price of Bitcoin drops below the $25000 price level, that would certainly have a negative influence on the price of BCH.
What do analysts and experts say?
From a recent low of $108.13 on March 11, Bitcoin Cash (BCH) jumped to a high of $138,19 on March 18, a 28% gain within a short time. The main question is, does it have more bullish strength left, which depends on both technical and fundamental factors.
JPMorgan expressed its concerns after the collapse of Silvergate Bank and claimed that this is “another setback for the crypto ecosystem” because replacing the instantaneous network for processing dollar deposits and withdrawals will be a difficult task.
Disclaimer: Crypto is extremely volatile and not suitable for everyone to invest in. Never speculate with money that you cannot afford to lose. The information on this site is presented for educational purposes only and should not be construed as investment or financial advice.