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The price of Bitcoin Cash (BCH) has been effectively lateralizing for several months now, but could soon make way for a period of volatility.
The drop in the price of BCH
After a peak in mid-May, which brought it back above $1,500, the price dropped to $550 and has remained in that area until today.
The current price is $557, and it has never been above $800 since June.
Some analysts argue that there is currently strong support at $530, and strong resistance at $711. It is, therefore, no coincidence that the price is basically continuing to fluctuate within this range.
But this situation may not last long.
Volatility on Bitcoin Cash, indicators
Although it is assumed that the ongoing lateralization could go on for a while, there is also the possibility of increased volatility. In fact, the Relative Strength Index (RSI) is at 41, which is a neutral zone that so far shows no clear signs of a possible strong move. Volatility is currently low, and the trend seems neither bearish nor bullish, at least for now.
However, this volatility appears to be increasing. This would suggest a possible change in trend, although it is difficult to speculate when this might occur. Certainly, the thresholds of $530 and $711 could be interesting indicators in this regard, because if they are broken, the period of lateralization could end.
The fact is that the BCH market can easily change its attitude very quickly, so even though there are currently no clear signs of a reversal in the short term, it could be disrupted very quickly in the event of important news, or breakage of important supports or resistances.
For example, at the beginning of April, the price was around $530, and within a little over a month it tripled, only to return to its starting level in the next month and a half.
Some analysts expect a drastic and sudden change in trend should the period of lateralization come to an end.
It is worth noting that the all-time high is still that of 20 December four years ago, when it touched $3,800. The current price is 85% lower.
Bitcoin Cash is among the world’s most used crypto assets
BCH, despite its plummeting value in recent years, remains by far one of the most widely used cryptocurrencies in the world. For example, a recent PYMNTS survey of 250 financial institutions revealed that although only 10% offer their clients access to cryptocurrencies, Bitcoin is offered by 6% of these institutions, while stablecoins, ETH and BCH are offered by 4%.
The popularity acquired over the years is still probably holding up, despite the poor price performance.