The cryptocurrency market has experienced a flash crash, with the prices of most cryptos currently down by over 10% in the past 24 hours
The cryptocurrency market has experienced massive losses over the past 24 hours, effectively wiping out the profits recorded in the last two weeks. Bitcoin is currently down by 11%, dropping below the $50,000 mark once again, and is currently trading just above $46,000 per coin.
Ether is also down by the same 11%, with the second-largest cryptocurrency losing its support around the $3,500 zone, and it is currently trading around $3,470 per coin. Bitcoin Cash (BCH) was one of the biggest winners last week, soaring close to the $750 region.
However, BCH has wiped out most of its recent gains, with the cryptocurrency losing more than 10% of its value in the last 24 hours. At time of writing, Bitcoin Cash is trading at $675 per coin and could drop lower in the coming hours if current market conditions persist.
Today felt like a fast capitulation on #altcoins.
— Michaël van de Poppe (@CryptoMichNL) September 7, 2021
Bitcoin Cash price outlook
The BCH/USD 4-hour chart is currently bearish following the massive losses recorded in the last 24 hours. The technical indicators quickly turned bearish after the performance yesterday. Bitcoin Cash’s RSI currently reads 34, which means that the cryptocurrency is now in the oversold region. The MACD line has also slipped into the bearish territory despite BCH still being up by 6% in the past seven days.
BCH/USD 4-hour chart. Source: TradingView
If the current bearish conditions persist, Bitcoin Cash could drop below the first major support level at $660. However, unless there is an extended period of sell-off like yesterday, the second major support at $639 should cap further downward movement for Bitcoin Cash.
The bulls are seeking to regain control of the market. If the market turns bullish, BCH could look to break past the $690 pivot level and reach the first major resistance level at $709. Bitcoin Cash will need support from the broader cryptocurrency market if it is to embark on an extended rally and aim for the next major resistance level at $742.
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Author: Hassan Maishera