The Bitcoin Cash price has been on a downward trend for the past week. It has slipped more than 14% since the start of the week. The coin has jumped more than 64% from its lowest point this year. However, it is still nearly 60% below its highest level this year in May.
Bitcoin Cash is a cryptocurrency that was created from the fork of Bitcoin. The altcoin was created in 2017 and in November 2018, it was split into two cryptocurrencies: Bitcoin Cash and Bitcoin SV. The coin ranks as the 14th most valued digital asset, between Terra and Litecoin.
BCH’S total market capitalization currently stands at $11.5 billion. The coin’s total volume traded in the last 24 hours has slipped 1.30% to $3.12 billion. Bitcoin Cash was invented to serve as digital cash; however, the network congestion and exorbitant transaction fees remain a challenge.
The Bitcoin price plays a huge role in the performance of Bitcoin Cash. Just like most altcoins, Bitcoin Cash has a close relationship to the world’s largest virtual currency. Bitcoin’s rally to the crucial target level at $50,000 is likely to affect the Bitcoin Cash price.
The coin’s rally recently seems to be fading. However, analysts exhibit optimism over the digital currency as the overall crypto market struggles to recover.
After hitting the crucial $700 level over the weekend, the Bitcoin Cash Price pulled back further. At the time of writing, the coin was trading 0.87% higher at $611.38. The BTC/USD is consolidating above the crucial support level of $600.
On the four-hour chart, it is trading below the 25 and 50-day exponential moving averages. The coin is also trading slightly above the 200-day moving average. As such, the coin’s bullish sentiment holds if it remains above the 200 DMA.
Therefore, more buyers need to enter the market to push the coin to the crucial level of $700. In the near term, the bulls might be trying to push the coin past the resistance level at $650.