Daily Bitcoin Cash BCH Technical Analysis

• Bitcoin Cash is sitting on top of the 20-day SMA.

• The MACD in the 4-hour chart shows sustained bearish momentum.

Following a heavily bullish Monday, the price managed to have three straight bearish sessions, dropping from $510 to $480. The price is currently pushed down by a super-strong resistance barrier, as shown in the IOMAP. Let’s take a closer look.

 

BCH Sits On Top Of 20-day SMA

After dropping over the last three days, the Bitcoin Cash price is sitting on top of the 20-day SMA. This is a critical moment of BCH. If the bears manage to flip this level from support to resistance, the Bitcoin Cash price will inevitably drop to the 50-day SMA ($380).

Image: BCH/USD daily

However, if the 20-day SMA stays strong, the buyers can make another attempt to breach the barrier above. However, the IOMAP tells us that this is going to be a pretty tough task. There is a strong resistance barrier between $480 and $510. Overall, 110,000 addresses had purchased 2.06 million BTC tokens in this zone. 

Image: IntoTheBlock

The 4-hour chart shows us that the immediate Bitcoin Cash price movement is going to be negative. The MACD shows sustained bearish momentum, which will prompt a further drop.

Image: BCH/USD 4-hour

Bitcoin Cash Is Expected To Reach These Levels

While the 20-day SMA has remained strong, the IOMAP shows us that it may not be robust enough to sustain repeated attacks. If this level breaks, the price will fall to the $450 psychological zone or even to the 50-day SMA ($380).