Bitcoin Cash Price Analysis: BCH Nosedives Towards $400
Daily Bitcoin Cash BCH Price Forecast
- Bitcoin Cash price has failed to conquer a crucial resistance level.
- The sentiment in the 4-hour BCH chart has reversed from bullish to bearish.
Bitcoin Cash had been trending horizontally for the last four days before the bears eventually took back control. As of now, the price is diving into the $400 psychological level. Let’s take a closer look with technical analysis.
Bitcoin Cash Price Fails At Critical Level
On January 21, the Bitcoin Cash price crashed from $495 to $420, flipping the $440 line from support to resistance. Since then, BCH has repeatedly tried to conquer the $440 resistance over the next four days and utterly failed to do so. The bears have managed to take control as the Bitcoin Cash price has started its sharp decline towards the 50-day SMA.
Image: BCH/USD daily
The MACD shows increasing bearish momentum. Hence a further price drop is expected. As per IntoTheBlock’s IOMAP, there is a lack of healthy support levels on the downside.
There are three signs in the 4-hour chart, which gives further credence to our bearish hypothesis. Both the MACD and the parabolic SAR have reversed from bullish to bearish. Plus, the 200-bar SMA has been flipped from support to resistance. All these indicators tell us that the price is likely going to drop even more.
Image: BCH/USD 4-hour
Bitcoin Cash Price Is Expected To Reach These Levels
Even if the bulls take over, the upside is tightly guarded by the $440 line. Previously, at this level, 117,500 addresses had purchased 2.54 million BCH tokens. The bears will likely take the Bitcoin Cash price down to the 50-day SMA ($385) on the downside. A further break can see a drop till the 200-day SMA ($290).