Bitcoin Cash price slides under a rock, recovery stifled by FTX bankruptcy news

Bitcoin Cash price is back on the drawing board as bulls bank on support at $100 to resume the uptrend.
FTX, Alameda Research and affiliated companies file for bankruptcy putting further pressure on crypto market.
BCH must flip a key falling trend line into support to avoid frequent dips below the critical $100 level.

Bitcoin Cash price (BCH) is balancing above $100 after bears snuffed out a bullish spark ignited early Friday. The cryptocurrency market will likely usher in the weekend wading in the murky waters left behind by FTX. All eyes are fixated on BCH’s ability to hold above the crucial $100 level.

FTX commences chapter 11 bankruptcy proceedings

FTX exchange, Almeda Research, and affiliated companies (rumored to be around 130) are in the process of declaring bankruptcy under Chapter 11 amid a liquidity crunch. The exchange is in the spotlight due to allegations of mismanagement of funds.

Deeper problems have continued to surface amid several ongoing investigations into FTX – its subsidiaries, and affiliated companies.

In other news, the firm said on Friday that Sam Bankman-Fried, commonly known as SBF in crypto cycles, has resigned as CEO to pave the way for John Ray III. Ray is taking over a company in chaos. However, in a statement released by FTX, he promised transparency, due diligence and thoroughness in all ongoing investigations.

“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.

“I want to assure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholders that we will conduct this effort with diligence, thoroughness and transparency,” Ray’s statement reads in part.

The world is watching as the cryptocurrency market endures another bloodbath in 2022. Ray assures investors and stakeholders that the new team under his leadership is ready and able to turn things around. In the meantime, investors are concerned about their holdings with the crypto market delicately yearning for recovery. Bitcoin Cash price has the potential to stretch its leg further, but first, bulls must defend the support at $100 and focus on clearing resistance at $122.

Can Bitcoin price escape the bears’ wrath?

Bitcoin Cash price faces immense overhead pressure, and the news from FTX is not helping. Support at $100 is in place to keep its downside in check and the next few hours could be critical in determining the future direction of BCH.

The Moving Average Convergence Divergence (MACD) donned a sell signal after the 12-day Exponential Moving Average (EMA) (in blue) crossed beneath the 26-day EMA (in red). Similarly, the Relative Strength Index (RSI) holds at 42.51 after recoiling from near-oversold conditions at 30.00.

BCHUSD daily chart

Looking at the daily chart time frame, both indicators show how Bitcoin Cash delicately holds above $100. A daily close below this level could validate extended declines back to the support at $90. If push comes to shove, BCH may revisit the $80 level before buyers consider pushing for another move north.

On the upside, Bitcoin Cash price must break and hold above the 100-day EMA (in blue) at $122, coinciding with a stubbornly bearish falling trend line to sustain the much-awaited swing beyond $145.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.