Bitcoin Cash Price Analysis: BCH Bears In Full Control As Price Crashes Down
Daily Bitcoin Cash BCH Price Forecast
- The MACD in the 4-hour price chart has reversed from bullish to bearish.
- BCH Flashes Sell Signal In The Daily Chart.
- The RSI in the daily chart has dipped into the neutral zone from the overbought territory.
Following a flurry of bullish activity over the weekend, the bears have taken complete control of the market. The price has crashed from $602 to $485. That’s a ~20% drop in overall valuation. Let’s see what’s going on behind the scenes.
BCH Falls Below $600 and $500
Bitcoin Cash has flashed a sell signal in the daily chart with a green-nine candlestick in the TD sequential detector. As you can see, flashing this signal has caused the price to crash below the $600 and $500 psychological levels.
Image: BCH/USD daily chart
In the process, the relative strength index (RSI) has dipped from the overbought zone to the neutral zone. This shows that the asset is no longer overpriced. As per IntoTheBlock’s “IOMAP,” it was critical for the bears to flip the $575 line from support to resistance. Previously at this zone, 38,500 addresses had purchased 1.6 million BCH tokens.
The four-hour chart for BCH has a host of bad news when it comes to future price action:
- The parabolic SAR has reversed from bullish to bearish, indicating that the current trend is pessimistic.
- The price has broken below the 20-bar SMA, which is a crucial level.
- The MACD has reversed from bullish to bearish.
Image: BCH/USD 4-hour chart
All these indicators tell us that the current price trend is overwhelmingly bearish, which could trigger a further price drop.
BCH Price Levels To Watch
If the price drops further, it could test the 50-bar SMA ($450). A further drop takes BCH down to the 20-day SMA ($395). Another break below that takes BCH down to the 50-day SMA ($315).