Bitcoin Cash Price Prediction: BCH Dips Below $400
Daily Bitcoin Cash BCH Technical Analysis
- The relative strength index (RSI) has dripped from the overbought zone to the neutral.
- The parabolic SAR has reversed from bullish to bearish in the 4-hour chart.
Bitcoin Cash rose from $275 to $425 over 11 days between December 24 to January 3. In the process, BCH flipped the 20-day and 50-day resistance from resistance to support. Let’s do some technical analysis to see how things are working behind the scenes.
Bears Correct The Price
After encountering heavy resistance at the $425 psychological level, the price has dipped down to $390. Due to this, the relative strength index (RSI) has dipped from the overbought zone to the neutral zone.
Image: BCH/USD daily chart
Looking at the 4-hour chart, we can see that the parabolic SAR has reversed from bullish to bearish, the same as the MACD. Both of these indicators show that a further drop is expected. As such, the 20-bar SMA must hold firm to prevent a catastrophic downfall.
Image: BCH/USD 4-hour chart
Looking at IntoTheBlock’s IOMAP, the buyers have a strong resistance barrier upfront at $425. Previously, at this psychological level, 54,000 addresses had purchased 1 million BCH tokens. On the plus side, if the price breaks above this zone, they should touch the $475 zone.
On the downside, there is a strong support level at the 20-bar SMA (4-hour chart). Below that, there is another key support at $350, which had previously forced BCH to form a double top pattern. If the price breaks below these levels, the price should find strong support at the 20-day SMA ($340).
Key Price Levels To Watch For BCH
The 20-bar SMA ($385) in the 4-hour chart is extremely critical. For now, it looks like the price is going to test this zone soon. If this level doesn’t hold, BCH should drop to $350. The price can bounce up from this zone and reach the $400 line.