Bitcoin Cash Price Prediction: BCH Consolidates After Dropping by $150
Daily Bitcoin Cash BCH Technical Analysis
- The bulls have retraced after testing key resistance at $470.
- The MACD shows decreasing bullish market momentum.
Bitcoin Cash plummeted from $600 to $450, losing $150 in its overall valuation. However, the buyers have started the day strong, as they attempt to take the price above a critical resistance level. Let’s take a closer look with technical analysis.
BCH Faces Strong Resistance At $470
As of now, the price faces strong resistance at $470. It looks like flipping this level from support to resistance was crucial for the bears. The price attempted to test this line before it eventually retracted.
Image: BCH/USD daily chart
Over the last two days, the Bitcoin fork has dropped drastically, which has reversed the parabolic SAR from bullish to bearish. Along with this, the moving average convergence/divergence (MACD) shows that the market momentum is on the verge of reversing from green to red. Both of these indicators show that the overall market sentiment is negative.
The chart below helps us visualize just how strong a resistance lies at the $470 line.
Previously at this level, 68,500 addresses had purchased 1.5 million BCH tokens. If the buyers manage to break above this level, they will be able to reach the $510 zone. On the downside, there is a distinct lack of healthy support levels to hold the price up.
Image: BCH/USD 4-hour chart
The 50-bar SMA closely defends the upside in the 4-hour price chart. A break above this level takes the price to the 20-bar SMA, which coincides with the $510 resistance zone.
Key Price Levels To Watch For BCH
If the bulls take control and break above the $470 resistance barrier, the price should reach the 20-bar SMA ($510). On the downside, if the sellers take back control, the price may drop to the 50-day SMA ($340).