Bitcoin Cash Price Prediction: A Strong Resistance At $490 hampers BCH
Daily Bitcoin Cash BCH Technical Analysis
- Bitcoin Cash price has lost $45 in overall valuation over the last four days.
- BCH is currently sitting on healthy support at the 20-day SMA.
This Sunday, Bitcoin Cash met heavy resistance at the $525 resistance barrier and it has since dropped down to $480. As such, the Bitcoin Cash price has lost over $45 in its valuation. Let’s take a closer look with technical analysis.
Bitcoin Cash Price Sits On Top Of 20-day SMA
Having dropped over the last 4 days, the Bitcoin Cash price has currently found support at the 20-day SMA ($450). During this downward plunge, the bears have flipped the $490-level from support to resistance. This was a key victory for the sellers since the IOMAP shows that $490 is a strong level.
Image: BCH/USD daily chart
As you can see, previously, nearly 58,500 addresses had purchased a little over 1.85 million BCH tokens at this level. Seeing how strong this level is, it seems highly unlikely that the bulls will break above this any time soon.
This is further corroborated when we look at the Bitcoin Cash price in the four-hour timeframe. The $490 resistance sees a confluence of the 20-bar and 50-bar SMAs. Plus, the MACD shows that the overall market momentum is in the red.
Image: BCH/USD 4-hour chart
Bitcoin Cash Is Expected To Rise To These Levels
Looking at all the indicators, our overall sentiment for BCH is negative. The 20-day SMA ($450) is going to be tested exceptionally heavily. A break below that will take the Bitcoin Cash price to the 50-day SMA ($360). However, the 200-bar SMA in the 4-hour time frame ($390) will hope to stem this downflow.