Bitcoin Cash's November 15 hard fork weighs on Bitcoin
|The Bitcoin Cash's hard fork on November 15 is believed to be the major catalyst for the sharp decline in Bitcoin prices.
The BTC/USD, which has traded steadily in a wait-and-see mode since two months, broke the solid 61.8% retracement support on August - September recovery (see Figure 1) and shred nearly $1000 within hours. The pair stepped in the oversold market; the daily RSI slipped below 30% following the sharp drop, hinting that a correction could follow in the coming days.
Figure 1: BTC/USDT daily chart
However, the upside could remain limited due to the global lack of appetite in cryptocurrencies and the low trading volumes.
Traders should watch the critical $5978 resistance (major 38.2% retracement on November 15 drop, see Figure 2), which should distinguish between the consolidation of the negative trend and a short-term bullish reversal. But given the current mood, it is highly unlikely that $6000-offers give way to a positive breakout.
On the downside, the next important technical level stands at $5500 (August support).
Figure 2: BTC/USDT hourly chart
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