- Bitcoin Cash price expected to fall to $400 support
- The closest support level lies at $430
- BCH faces resistance at the $450 mark
The Bitcoin Cash price bounced from the $420 mark to retest the $450 resistance level. However, BCH was unable to break through due to the strong selling pressure affecting the price action. Since then, the price has fallen to the $430 support level where it currently hovers. While the price holds above the support, the selling pressure is yet to subside.
The broader cryptocurrency market observes a bearish market sentiment over the last 24 hours as most major cryptocurrencies record losses to their prices. Major players include Polkadot and Dogecoin that record a 7.74 and an 8.14 percent decline, respectively. Other assets including BTC and ETH also record a 1.57 and a 4.99 percent drop respectively.
Technical indicators for BCH/USDT: Bears dominate the markets
Across the technical indicators, the MACD is currently bullish, as exhibited by the green color of the indicative histogram. However, the Bitcoin Cash price action has observed a decline in its bullish momentum over the last 48 hours, as observed in the declining size of the histogram.
Among the two EMAs, the 12-EMA is currently moving horizontally as the short-term trend faces rejection at the $450 mark. Meanwhile, the 26-EMA is catching up with a declining slope, also showing selling pressure at the price level. Currently, the indicator is suggesting a bearish crossover by tomorrow morning.
The RSI is neutral at press time, and trading close to the 50.00 mean level. The indicator is also trading with a bearish outlook as the last few hours saw a decline from above 42 towards the oversold region at 30.
The Bollinger Bands are currently narrow and show further convergence as the price oscillates around the $435 mark. The indicator’s mean line highlights resistance to the bulls making it difficult for the Bitcoin Cash price to cross above the $440 mark. The upper limit of the indicator is moving downwards with a steep slope showing high selling activity in the markets.
Overall, the 4-hour technical analysis issues a strong sell signal showing bearish dominance at the current price level. The analysis shows 14 of the 26 major technical indicators in support of a downwards movement for the Bitcoin Cash price. On the other hand, only two indicator shows some bullish presence at the current level. Meanwhile, the remaining ten indicators sit on the fence and do not issue any signals supporting either side of the market.
The 24-hour technical analysis shares this sentiment, also issuing a sell signal showing a negative outlook for the Bitcoin Cash price action across the mid-term charts. The analysis shows 15 indicators suggesting a further breakdown of the Bitcoin Cash price against only three indicators suggesting an upward price movement. Meanwhile, eight indicators remain neutral at the time of writing.
What to expect from the Bitcoin Cash price?
Traders should expect the Bitcoin Cash price to continue falling as the price returns to the psychological support level at the $400 level. At the current level, the selling activity is still too high as the broader cryptocurrency market presents a bearish outlook. The pressure prevents the bulls from gathering momentum and therefore prevents any meaningful breakthroughs. The short-term indicators and the mid-term technical analyses also reinforce this suggestion.