There is no way to consider this a bullish market, and most of the money will be made by shorting not only ZCash, but most other smaller markets.
ZCash went back and forth on Tuesday as we continue to see crypto markets look very soft. That being said, we are hanging about the crucial $85 level, and it looks as if we are trying to find enough support to hang on. The $85 level has been important multiple times, so it does make a certain amount of sense that we would have a reaction here. The question now is whether or not the crypto markets will try to recover. After all, ZCash is pretty far down the line when it comes to risk appetite, so it needs help from the outside.
Bitcoin has stabilized just above the $30,000 level, which ties in quite nicely with the $85 level offering support. That being said, the market is likely to continue looking at this area as important, but if Bitcoin breaks through the $30,000 level, that will certainly send the rest of the crypto markets much lower, ZCash included. At that point, it is very likely that ZCash will go looking to the $75 level initially, perhaps down to the $50 level given enough time. This is the most likely scenario, but it does not necessarily have to happen right away.
Rallies at this point will face quite a bit of resistance near the $120 level, not only due to the fact that it is an area that has a certain amount of psychological importance to it, but also an area where we have seen a lot of selling. Because of this, the market is likely to continue seeing quite a bit of trouble there. Rallies at this point will then have to face the 50-day EMA above, which is dipping below the 200-day EMA, suggesting that we are getting the “death cross.” Either way, ZCash does not look very strong, so I think it is probably more likely than not going to find plenty of sellers every time it rallies. I have no interest in buying, at least not anytime soon. Longer term, we may get a reversal in Bitcoin, and then you can start to look towards these smaller markets. Until that happens, there is no way to consider this a bullish market, and most of the money will be made by shorting not only ZCash, but most other smaller markets.