The Bitcoin Cash price is struggling as investors reflect on the latest announcement by Chinese authorities about cryptocurrencies. BCH is trading at $505, which is about 5% above the lowest level in September.
China cryptocurrencies ban
The biggest catalyst among cryptocurrencies is Friday’s announcement by the People’s Bank of China (PBOC). The country’s central bank announced that all cryptocurrency transactions in the country were illegal.
It also ordered offshore cryptocurrency companies to cease offering their services to Chinese customers. In the aftermath, companies like Binance and Huobi announced that they would not accept more customers from China. The companies will also close accounts belonging to Chinese customers.
As a result, the Bitcoin Cash price declined sharply on Friday as investors reflected on the latest news. However, during the weekend, the price stabilized as the market concluded that the new measures by the government will have a minimal impact on crypto prices.
First, China has always been hostile to cryptocurrency prices. It initially banned crypto transactions a few years ago. It then reiterated that all crypto activities, including mining, were illegal in the country in July. Therefore, the overall volume of cryptocurrencies from China is relatively small.
Second, the BCH price is relatively steady since cryptocurrencies have always bounced back after these actions by the Chinese government.
Meanwhile, fundamentally, another catalyst for Bitcoin Cash is the fact that September is coming to an end this week. Historically, September is usually a challenging month for stocks and other assets as the Summer season ends. Indeed, equities have struggled in September, with the Dow Jones and S&P 500 index declining.
September weakness is usually followed by a strong performance in October. Therefore, there is a likelihood that the coin, and other cryptocurrency prices will rebound this month.
Bitcoin Cash price prediction
The daily chart shows that the Bitcoin Cash price has struggled lately. It has declined by more than 70% from its highest level this year. Also, it has fallen by 38% from its highest level this month. Along the way, it has found a strong support at the psychological level of $500.
It has also declined below the 25-day and 50-day moving averages. Therefore, the coin will likely hold steady this week and then rebound as October starts.
