Bitcoin Cash Price Prediction: BCH Faces Rejection At $460
Daily Bitcoin Cash BCH Technical Analysis
- The Bitcoin Cash price is about to flash a sell signal in the TD sequential indicator.
- The MACD in the 4-hour chart shows increasing bearish momentum.
Since January 28, the Bitcoin Cash price rose from $377 to $460 (February 6), flipping the 20-day and 50-day SMAs from resistance to support. However, while the bulls have been in control for the last 10 days, it seems like BCH may soon face correction.
Bitcoin Cash Price Flashes Sell Signals
Bitcoin Cash price has encountered heavy resistance at $460, which has pushed the price down to $455. However, a further drop could be on the horizon for BCH.
- The TD sequential indicator is on the verge of flashing a sell signal, in the form of a green-nine candlestick
- Plus, the 50-day SMA is on the verge of crossing over the 20-day SMA to form a bullish cross pattern.
Image: BCH/USD daily
We can expect the Bitcoin Cash price to drop to the 20-day SMA ($435). According to IntoTheBlock’s IOMAP, 137,000 addresses had previously purchased 1.17M BCH tokens at this zone. Even if BCH breaks below this level, there is another viable support barrier at the 50-day SMA ($420).
Looking at the 4-hour Bitcoin Cash price chart, we can see that BCH has reversed the 200-bar SMA from support to resistance. Plus, the MACD indicates increasing bearish momentum, which again adds more credence to our bearish credence.
Image: BCH/USD 4hour
Bitcoin Cash Price Is Expected To Reach These Levels
As Bitcoin Cash price makes its way towards the 20-day SMA, the buyers will hope that this level stays strong to prevent further downflow. However, the 50-day SMA should absorb any residual selling pressure.