Bitcoin Cash (BCH) had a poor performance in July, with the fear and greed index now at 50. The coin fell to $230 by the end of the month, down from the previous monthly high of $330.53.
There are signs that the rotation from digital currency to stocks is beginning. Data shows that the volume traded of cryptocurrency in exchanges fell sharply in July, despite a number of important catalysts that occurred in the previous month.
For example, the Bureau of Labor Statistics (BLS) revealed that the America’s consumer price index (CPI) dropped from 4.1% to 3.0%. The closely watched Personal Consumption Spending (PCE Index) dropped from 4.0% down to 3.1%. This suggests that the country’s inflation is falling at a faster pace than expected. As a result of this, investors believe that the Federal Reserve has completed raising interest rates to the highest level in 22 years.
The partial victory of Ripple in the long-running lawsuit against the Securities Exchange Commission (SEC) is also noteworthy. In her ruling, the judge ruled that XRP is not a security.
As investors switched from cryptocurrencies to shares, the price of cryptocurrencies is likely to have fallen. The Nasdaq 100 index and S&P 500 indices surged to the highest level in months, with the former soaring by 42% this year. Therefore, it is likely that many crypto-investors have moved their money to stocks.
The BCH’s price has moved in a sideways direction over the last couple of weeks, as shown by the chart. Moving averages of 50 and 25 periods have been adopted. The gap between the two has narrowed. The coin has risen above the critical support level of $230.94 – the lowest point in the market. The Relative Strength Index (RSI) is now below 50 and the Average True Range (ATR) has declined. This suggests that the indicator will continue to consolidate in the days ahead. In a high-risk environment, if the indicator drops below $230 it will be pushed to the next level of support at $200. A move below $266 opens the possibility that the Bitcoin Cash Price rises to $300.
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