Technical outlook:
Bitcoin Cash extended its downtrend and slipped to $106.00 on Friday. The crypto has found some bids coming in since then and is seen to be trading close to $120 at this point in writing. A break below $106.00 from here will drag prices lower towards $65.00 before resuming higher again.
On the other hand, if bulls are able to hold prices above $106.00, Bitcoin Cash could push through the $210 initial resistance and confirm that bulls are back in control with a meaningful bottom in place around $106.00. The crypto has been sliding since the $1,640 highs registered in May 2021 and the drop might be complete at around the $106.00 low.
Bitcoin Cash should ideally produce a corrective rally towards $800.00 at least, before resuming lower again. Please note that upside potential remains through $1,050, which is the Fibonacci 0.618 retracement of the entire drop between $1,640 and $106 levels respectively. Traders might be preparing to initiate fresh long positions from the current levels ($120).
Trading plan:
Aggressive: Potential rally towards $210 against $100
Good luck!
