- Bitcoin Cash price analysis suggests decay to the $400 mark.
- BCH faces resistance at the $550 mark.
- The closest support level lies at $500.
The Bitcoin Cash price analysis shows that BCH has observed a steady to the $500 support with a set of lower highs set up in the last week. The selling pressure continues to rise as the bullish sentiment dies down. The market outlook is very negative suggesting a sharp drop towards the $400 mark.
The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include ATOM and NEAR, recording a 6.15 and a 5.07 percent decline, respectively.
Bitcoin Cash price analysis: Market observes steady decay
Across the technical indicators, the MACD is currently bullish, as expressed by the green histogram. However, the indicator shows little bullish momentum as the size of the histogram is tiny at press time. As BCH continues oscillating around the $510 mark, the indicator would continue to observe low momentum as it has observed in the last three days.
The EMAs are currently moving horizontally as BCH observes little to no market activity. The two EMAs are currently trading close to each other showing little to no divergence as traders continue speculating.
The RSI was down in the oversold region yesterday but has shown recovery to the 50.00 index level as BCH held the $500 support. However, the indicator is currently trading with a gentle slope suggesting little to no volatility in the markets as trade volume remains low. Regardless, the indicator’s mean position leaves room for a rally in either direction, while the downwards movement suggests bearish dominance at press time.
The Bollinger Bands are currently narrow and show horizontal movement suggesting a convergence in the short term. The price is currently trading below the mean level suggesting a downwards trend for the indicator as it converges around the $500 mark. Overall, the indicator suggests a dropping price volatility for BCH.
Technical analysis for BCH/USDT
Overall, the 4-hour Bitcoin Cash price analysis issues a sell signal as 13 of the 26 major technical indicators support the bears across the timeframe. On the other hand, only three indicators support the bulls showing low buying activity in the markets. Meanwhile, the remaining 10 indicators sit on the fence and do not issue any signals at press time.
The 24-hour Bitcoin Cash price analysis accentuates this sentiment and also issues a sell signal with 14 of the indicators suggesting a downwards price movement against only three indicators supporting the bulls across the timeframe. At the same time, nine indicators remain neutral and do not support either side of the market.
What to expect from the Bitcoin Cash price analysis?
The Bitcoin Cash price analysis shows that BCH is currently observing a period of low volatility as the majority of the traders speculate the market. The short-term technical indicators are unclear, and the mid-term technical analyses suggest a bearish rally. However, with the trade volume remaining low, BCH can be expected to observe decay below the $550 mark as the price returns towards the $400 long-term support level.
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