Bitcoin Cash (BCH) seems to have two purposes. One, Bitcoin (BTC) enthusiasts love to hate it. Two, it provides trading opportunities. Its value is nebulous, and that, in turn, creates a lot of volatility in its price.
Recently, we have been encouraged by the fact that Bitcoin Cash (BCH) made an impulsive move to the upside. The Bitcoin Cash (BCH) move may have been fueled by rallies in alts just below Bitcoin Cash (BCH) on the market cap table (not shown).
Looking at its daily price chart, Bitcoin Cash (BCH) ran into resistance in the $157 to $167 zone (Figure 1). This area was a cluster of activity from January, and it’s important because it preceded the final leg of the down move.
If resistance holds, and Bitcoin Cash (BCH) falls further, a move to $146 would seem like a good initial target. If $146 were to act as support, it could be positive for Bitcoin Cash (BCH) and may also indicate alt season can continue.
Conversely, if Bitcoin Cash (BCH) crashes below $146 that could be a sign that the speculative up move has ended.
Bottom Line: Bitcoin Cash (BCH) could be a metric for speculative fever in alts. At a minimum, Bitcoin Cash (BCH) seems to have found a home as a technical indicator.