Bitcoin Cash remains on the brink of a major correction after suffering a 26% decline over the past 11 days.
It is now hovering above the $360 level of support despite momentarily rallying to around $400 on Monday.
The lack of positivity from a technical perspective is in stark contrast to that of Ethereum which remains in a bullish posture with daily candles consistently closing above the $257 level of support.
A break down in price from $360 will see Bitcoin Cash test the 100 exponential moving average (EMA) at $327 with potential that it may slide all the way down to the 200 EMA $307.
In order to invalidate the current bearish bias it needs to rally and close daily candles above the $418 level of resistance, failure to do this would add momentum to a further swing to the downside.
In spite of the coming weeks looking bleak for Bitcoin Cash, it is still 88% up since the turn of the year when it was trading below the $200 mark.
The rise in price can be attributed to a unified softening of views towards cryptocurrencies in light of increased institutional investment and mounting anticipation surrounding Bitcoin’s halving in May.
The Bitcoin halving will see miner rewards slashed from 12.5BTC to 6.25BTC per block, which has historically caused a surge in the price of all cryptocurrencies as the notion of digital scarcity comes into effect.
With less supply the market price will naturally increase. This should, in turn, drive potential demand to increase the likelihood of a rally.