Bitcoin Cash finished lower during the last week and has started this week on the back foot as the entire crypto industry seems to be under the grip of the fears over regulation and crackdown from various countries in which trading is being carried out. It is indeed a worldwide phenomenon that we are seeing and this has led the entire crypto industry to crash over the last week or so. The prices of Bitcoin cash have moved lower from the mid 2000 region to trade around the $1750 region as of this writing.

The crypto industry has been rocked by news that the regulators in South Korea would be looking to shutdown the crypto exchanges. Though the regulators there have not yet confirmed the news and have been faced by a large backlash from the traders and investors over there, the market has begun to outrun the news, as usual, and we have been seeing some panic selling over the last week or so. This has affected the Bitcoin cash market as prices fell through the important $2200 region.

Once the price fell through the region, technically, there was not much support below and the prices easily fell through the $2000 region within a short while and headed towards the $1500 region and below. There, it got some support from the buyers which has since helped prices to recover back above the $1700 region. We believe that this reaction from the Bitcoin cash market has been too much for just what is a news report at this point of time and we believe that there could be many other factors involved in the price drop.

One of those factors could be that we saw the expiry of the first Bitcoin futures contract last week and this could have had an impact on the prices of bitcoin due to profit taking and large investors looking to cash in and this effect could have percolated to the other parts of the crypto industry. This could also have been general profit taking after the large run higher over the last year or so and once the correction is done, we should see the traders begin to buy back bitcoin cash once again.

Forecast

We should see the prices begin to stabilise in the short term and prepare itself for the next move higher over the next few days. After a few days of correction, we should see the prices moving higher with the $2200 region expected to act as the ceiling for this week.