Bitcoin Cash Price Resumes Its Downtrend
This week’s analysis shows a possible extension at 219.60 US dollars with enough selling pressure. Given that the rate is at 464.30 with the 38.2 percent extension, and 417.60 dollars with the 50 percent extension. Higher extensions show fewer rates as 61.8 percent lines up with 370.90 dollars, and 78.6 percent lines up above 300 US dollars.
The least resistance path is to the downside as the one hundred SMA is under the two hundred SMA. As the chart shows, this means a very possible resume in the downtrend than a reversal. The one hundred SMA reflects dynamic resistance, as the MAs continue to have wider gaps.
Bitcoin cash will start moving south along with the RSI point down. Stochastic, moving downwards, shows the authority of the bears in the market.
There is still no confirmation of a reversal. It might be so, though, if there was a move above the level of 615 dollars, with the dynamic inflection point of two hundred SMA.
The community is starting a stress test for BCH on the first of September, and this will be a deal-breaker as of where the trend stands. It might attract more buyers, or it might break the trend as a whole. The point is to pressure the ecosystem into dealing with a heavy load of transactions and see how it performs. Developers are also contributing by coming up with the necessary tools to execute the test, with minimal worry about the ecosystem crashes.
The community created a twitter account @StressTestBCH for those interested to be able to follow up on updates. Overall, the results of this stress test will show people the sustainability and reliability of the BCH ecosystem, for people to know if it is practical to back it and start using more of it, or steer clear of the currency.