Bitcoin Cash Price Prediction: A Strong Resistance At $490 hampers BCH

Last Updated July 23rd 2021
2 Min Read

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.

bch/usd daily chart 011821

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.

bch/usd volume chart 011821

Image: IntoTheBlock

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. 

bch/usd 4-hour chart 011821

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.

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