Bitcoin Cash Price Analysis: BCH Faced By Imminent Nosedive To $440 Before Recovery Resumes
- Bitcoin Cash price has a challenging time sustaining uptrend to $500.
- Support at $475 must hold; otherwise, losses to $440 will come into play.
Bitcoin Cash price has succumbed to intense selling pressure, whereby its lock-step trading has been inclined to the south. A recent break under a long-term ascending trend line added weight to the correction.
In the meantime, BCH trades at $481 after holding support at $475. However, recovery to $500 seems to be taking ages, perhaps due to the lack of enough tailwind. It is worth mentioning that Bitcoin Cash downtrend will carry on, especially if it makes a daily close under $475.
Bitcoin Cash odds for another downswing increase
The Moving Average Convergence Divergence (MACD) adds credence to the bearish outlook based on the four-hour chart. This technical tool follows Bitcoin Cash’s trend and calculates the momentum.
A couple of exponential moving average oscillates, in turn sending either bearish or bullish signals. A call to offload Bitcoin Cash occurred when the 12-day EMA crossed under the 26-day EMA, raising the odds for another breakdown. Besides, the MACD could not break into the positive territory, which emphasizes the bearish grip on the BCH.
BCH/USD four-hour chart
A massive seller congestion zone has been brought into the picture at $482 to $495, according to the IOMAP on-chain model by IntoTheBlock. Nearly 153,000 addresses previously purchased approximately 844,000 BCH in the range. As Bitcoin bulls fight for a breakout toward $500, sellers in this zone absorb most of the buying pressure, leaving buyers exhausted. Other key resistances are illustrated in the ranges $495 to $508 and $521 to $538.
Bitcoin Cash IOMAP model
The same IOMAP model shows Bitcoin Cash is sitting on top of relatively weak support levels. In other words, the lack of solid support could see a slight downward push on BCH wreak havoc to the progress made since the crash in June to areas marginally under 400.
However, the region between $465 and $478 applies to the around 80,000 addresses that have previously bought roughly 271,000 BCH. Trading below this zone may enhance the bearish grip as declines to $440, and $400 become apparent.
It is worth keeping in mind that a daily close above the support at $475 will bring back the much-needed market stability. At the same time, allow bulls to focus on gaining the lost ground beyond $500. Further up, bulls seem to gaze at $540 before rolling toward $600.