Technical outlook:
Bitcoin Cash dropped through the $101.21 lows during the Asian session on Wednesday as the sell-off continued from Tuesday. The crypto has broken its interim support at 106.00 marginally and might bounce back from current levels. Short-term resistance is now seen at around 125.00 and a break there will confirm that bulls are back in control.
Bitcoin Cash has already carved a larger-degree corrective wave between $1,605 and $101.21 levels in the past several months. The corrective zigzag might be complete at $101.21 or could be near its completion. Please also note that the above drop could be the beginning of a much larger correction in the coming months.
Bitcoin Cash has dropped through fresh swing lows at around $101.21 and is pulling back above the $103.00 handle soon. Also, note that price action is accompanied by a strong bullish divergence on the daily RSI as shown here. This could signal a potential trend reversal. So, a push above $125.00 will confirm that a meaningful bottom is in place.
Trading plan:
Be ready for a potential bullish reversal
Good luck!
