Bitcoin Cash(BCH) after hitting its one-year high of $767.51 on February 16, 2021, has suffered a sell-off. The sell-off trend has been plaguing the BCH prices constantly. It is seen that soon after the BCH prices register highs, profit-booking starts and brings the value down.
BCH sustained at around the $700 price tag for a week, and just when it was thought that the uptrend will continue, it plummeted to $480-$500 levels. However, it is the characteristic of the cryptocurrencies, and volatility is an inevitable part of it.
Bitcoin Cash(BCH) is trading at $522.77 up 0.93% from the session. It boasts a market capitalization of $9,760,120,200 with 18,688,213 BCH in supply. The volumes saw a 20% shrink in the last 24 hours amounting to $2,412,636,005. BCH ranks 13th on the list of cryptocurrencies according to CoinMarketCap.
Technical Analysis of BCH
The Four-hour candle chart showcases the sideward momentum of the BCH price after the February sell-off. Although there were multiple attempts to revive the price, it faced continuous rejections at $540, $565 levels.
However the uptrend broke down after the price hit $605 high and selling pressure took over the market. The resistances are continuously varying, hence has rendered the market directionless.
MACD levels indicate slightly bearish momentum, signalling that it could lead to a bearish trend if the support levels get broken.The RSI at just above 40 and pivoting around the same levels, hence if the whales involve themselves in buying, it is most likely that the prices will proceed upwards.
Bolllinger band is narrowing down, and the prices are grazing the lower bollinger band signifying slight to moderate bearish stance. Experts predict that the consolidation will continue for a couple more trading sessions, but if the resistance levels at $500 gets broken, it will be catastrophic as the next support levels are far below at $400.
On the contrary, if the price breaks out of the $600 resistance, and experiences no selling pressure, it can hit $700 and beyond soon.
- Resistance: 545, 550
- RSI: 40
- Support: 508, 500
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Source: https://coinpedia.org/price-analysis/bitcoin-cash-price-analysis/
