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