Bitcoin Cash Price Analysis: BCH/USD sinks towards $300 as crypto carnage catches momentum

Digital assets across the board are in turmoil. There is a bearish cloud across the market, threatening to erase most of the progress made in the last couple of months. For instance, Bitcoin Cash had advanced to new 2020 highs at $498. However, the losses witnessed in the past couple of weeks have seen BCH/USD plunged to levels under $350 while declines still eye lower levels towards $300.

Bitcoin Cash price is down 5% on Wednesday during the Asian trading session. From an opening value of $352, there was an attempt to push higher, however, the bulls lost control at $361.85 (intraday high). Thus leaving a gap that has since been explored massively by the bulls with losses going to the extremes of $330.09 (intraday low). At the time of writing, BCH/USD is trading at $334 amid a building bearish momentum and high volatility levels.

Unknown miner sweeps 9,000 BCH previously sent to SegWit addresses

A shocking revelation within Bitcoin Cash shows that a mystery miner has swept at least 9,000 (approximately $3 million) of ‘lost’ Bitcoin Cash, claiming the coins for his own instead of sending them back to their rightful owners. To understand this, one must go back in time when Bitcoin Cash was hard forked from Bitcoin (BTC) in August of 2017. Due to the similarities in wallet addresses, Bitcoin Cash users sent up to 18,000 BCH to SegWit addresses. The coins disappeared due to lack of compatibility between BCH addresses and BCH addresses. It is not known how many coins can be recovered, besides most of the remaining unrecovered coins were of smaller quantities.

An unknown miner has swept up nearly 9,000 BCH that were mistakenly sent to SegWit addresses (which are only redeemable on Bitcoin.) Over $3M as of today. H/T @khannib @coinometrics https://t.co/wrBGhYOa3o pic.twitter.com/Xug5e6fLq1

— Jameson Lopp (@lopp) February 25, 2020

Bitcoin Cash price technical update

BCH is seen trading within a falling wedge pattern. The price is also below the moving averages, where the 50 SMA and the 100 SMA have turned into resistance zones at $372.40 and $377.94 respectively on the 1-hour chart. The crypto’s path of least resistance remains to the downside especially with the RSI making a comeback into the oversold region. Bearish strength is also emphasized by the MACD’s drop into the negative territory. Moreover, the widening gap between the 100 SMA and the 50 SMA signals rising selling activities in the market.

BCH/USD 1-hour chart