With the backing of trillion-dollar companies, the popular cryptocurrency saw a swift recovery in June. However, investors were taken by surprise when EDX Markets, supported by Citadel Securities, Fidelity Digital Assets, Charles Schwab Corporation, Virtu Financial, and Sequoia, withdrew their support months later. This turn of events caused the price of BCH Coin to plummet, triggering a price drop and raising questions about whether the hopes for a rise had come to an end.
The altcoin, once famous for its four-digit prices, now faces the risk of falling below $200. Failing to overcome the resistance of $270 and retreating to $210 following the recent Bitcoin drop, the Bitcoin fork altcoin demonstrated the risks of panic selling as the Asian markets opened.
While the price has been maintaining the $250 level, it is now affected by BTC losses and is at $234. The price, circulating around the 50-day EMA, has found support there for the moment. However, if it closes below this, a fall to $200 could be seen.
On the four-hour chart, there is a golden cross indicating a short-term rise. However, with the MACD in the negative and the price remaining below $245, the risk remains high.
BCH’s Golden Ratio resistance level is at $270, and in this scenario, it could rise to as high as $329. If BTC is to undergo a deeper correction, there might be a peak attempt after Wednesday to gather more liquidity for profit-taking sales.