Bitcoin Cash Price Analysis: Bears Drop BCH Below Key Levels
Daily Bitcoin Cash BCH Price Forecast
- Bitcoin Cash Price fell by $80 this Thursday.
- The 20-day SMA was flipped from support to resistance.
Bitcoin Cash price managed to string together four consecutive bearish days as it fell from $510 to $415. The most notable dip came this Thursday, wherein the Bitcoin fork fell by a staggering $80.
Bitcoin Cash Price Flips Crucial Levels
During this Thursday’s drop, Bitcoin Cash price managed to flip two crucial levels from support to resistance – the 20-day SMA and the $430 resistance barrier. As of now, the price is on course to drop till the 50-day SMA ($375).
Image: BCH/USD daily
As can be seen in IntoTheBlock’s IOMAP, flipping the $430 resistance was a big win for the sellers since it’s a robust level. Previously at this zone, a little over 65,000 addresses had purchased around 1.56 million BCH tokens.
The 4-hour chart tells us that the Bitcoin Cash price may drop even more. Firstly, the moving average convergence/divergence (MACD) shows increasing bearish momentum. Secondly, the 50-bar SMA has crossed over the 20-bar SMA to form the bearish cross pattern. Both these indicators show that BCH is likely going to drop a bit more.
Image: BCH/USD 4-hour
Bitcoin Cash Network Getting Weaker
As per IntoTheBlock’s “Daily Active Addresses,” it seems like the number of addresses entering the network has dipped from 55,000 to 40,000 over the last 48 hours. This is a negative sign since this tells us that the network is getting progressively weaker.
Bitcoin Cash Price Is Expected To Reach These Levels
We expect Bitcoin Cash Price to drop to the 50-day SMA ($375) since certain indicators are flashing the sell signal. If the buyers retake control, they will need to conquer the $430 resistance. If they manage to break past it, BCH reaches the 20-day SMA ($475).