Bitcoin Cash Price Analysis: Bears relentless as BCH nears $250 psychological level
Daily Bitcoin Cash BCH Price Forecast
- Bitcoin Cash is trending in a downwards parallel channel in the 4-hour time frame.
- The number of addresses holding 10,000 - 100,000 BCH has risen from 151 to 173 over the last three weeks.
After losing steam near the $350 psychological level, Bitcoin Cash has been on a steady downtrend. Over the last two weeks, the price has dropped from $350 to $265, breaking below the 20-day and 50-day Simple Moving Averages (20-day SMA and 50-day SMA). The 4-hour chart doesn’t make for pretty reading either. Let’s dive deeper with technical analysis.
BCH bears in control as price goes down
The moving average convergence/divergence (MACD) suggests that market momentum in the daily timeframe is extremely bearish. What this means is that the aforementioned downtrend is probably going to continue. Having broken below two key levels before (20-day and 50-day SMA), there is no reason why the bitcoin fork won’t break below the $260 support line.
Image: BCH/USD daily chart
It will be interesting to see how the investors react once Bitcoin Cash reaches the $250 psychological level. Are they going to keep cashing out or are they going to use it as an entry point? That remains to be seen.
In the shorter the 4-hour time frame, the price is trending in a downwards channel formation. With the RSI (relative strength index) trending in the neutral zone, it will be interesting to see how the price acts within the channel.
Image: BCH/USD 4-hour chart
Having found support in the lower bound ($256) the price has bounced up and aims for the 20-bar SMA ($274). If the price manages to cross that, it will be interesting to see how the bulls react upon encountering the channel's upper bound ($277.50).
Whales remain unfazed despite the dip
Santiment’s holder distribution chart shows us that the number of addresses holding 10,000 - 100,000 BCH tokens has risen from 151 to 173 over the last three weeks.
Image: Santiment Holders Distribution
This is a significant number as this shows that despite the price dip, the whales continue to strengthen their portfolios instead of selling off. This is a positive sign for Bitcoin Cash.
Key price levels to watch
If BCH drops to the $250-zone, it will be interesting to see how the bears react upon reaching this psychological level. If the price breaks below the $240 support, then there could be more grief incoming for BCH holders.
On the other hand, if the buyers bounce up from the $250-zone and break above the 50-day SMA ($270), that could mean that the sentiment has reversed negative to positive and a return to $300 is on the cards.