0
0

Bitcoin Cash Price Analysis: BCH Drops Below The 20-Day SMA

Last Updated December 23rd 2020

Daily Bitcoin Cash BCH Price Forecast

  • Bitcoin Cash had faced rejection at the $350 level before dropping down.
  • The MACD shows decreasing bullish momentum.

The bears have taken control of the market this Wednesday as the two latest candlesticks have formed the bearish engulfing pattern. The latest candlestick has dropped below the 20-day SMA. 

 

BCH To Test 50-Day SMA

After dropping below the 20-day SMA, the Bitcoin fork looks all set to conquer the 50-day SMA. The MACD shows that the market momentum is rapidly reversing from bullish to bearish. However, the $305 support wall can still spoil the party for the sellers.

bch/usd daily chart 122320

Image: BCH/USD daily chart

Looking at IntoTheBlock’s In/Out of the Money Around Price (IOMAP), the $305 zone seems like a pretty significant psychological level. Looking deeper, one can see that nearly 89,000 addresses had previously purchased 1.11 million BCH tokens here. 

As such, this barrier should stop a potential downtrend and hold the price up temporarily. However, it may not be able to hold up against immense selling pressure.

bch/usd volume chart 122320

Image: IntoTheBlock

On the upside, we have a solid resistance barrier at ~$340, which looks robust enough to stop any weak bullish comeback attempts.

 

Key Price Levels To Watch

The $305 support line, along with the 50-day SMA, are going to be absolutely crucial in stopping BCH’s plunge.

Top Brokers in
    All Regulated Brokers
    71% of retail clients lose money when trading CFDs with this provider.

    more from Cryptocurrency News...

    Daily Bitcoin BTC Price Analysis Bitcoin faces short-term resistance at the upper Bollinger band in the 4-hour time frame. IntoTheBlock shows...
    Daily Ethereum ETH Price Analysis Ethereum is no longer overpriced as per the relative strength index. The $1,250 resistance coincides with...
    Daily Ripple XRP Price Analysis Ripple is trending along horizontally at $0.295. The Bollinger band in the 4-hour chart shows low price...
    Daily Bitcoin Cash BCH Price Analysis BCH bears took back control after two straight bullish days. IOMAP shows a lack of strong resistance...
    Daily Litecoin LTC Price Analysis Litecoin price sandwiched between 20-day SMA and $155 resistance. LTC has healthy support levels on the...