BCH Crypto Might Drop as Bitcoin Cash Technicals Flag Bearish
The $BCH crypto price has been exhibiting a consolidated movement around the $448 to $454 range in recent sessions on the 4-hour chart, showing signs of stagnation below key resistance levels. Despite minor fluctuations in closing prices from $448.1 to $454.4, the overall trend has been somewhat subdued, lacking significant bullish momentum.
The technical indicators for BCH point towards a bearish outlook in the short term. The 9 EMA (Exponential Moving Average) and 20 EMA lines have been trending downward, with the most recent readings at $453.81 and $458.76, respectively. This indicates a bearish crossover scenario where the shorter-term moving average resides below the longer-term average, suggesting that the downward pressure might continue.
Further corroborating this bearish sentiment is the Moving Average Convergence Divergence (MACD) indicator, which is currently positioned in the negative zone. The latest values show the MACD line at -3.495, with a signal line at -0.635, leading to a histogram value of -2.860. This widening gap between the MACD and its signal line underscores a strengthening bearish momentum.
The Relative Strength Index (RSI), hovering around 41.77, signals that the BCH crypto is neither in an oversold nor overbought condition, but it leans towards bearish territory due to its sub-50 reading. This adds to the cautious outlook for the asset.
Looking at potential movements, resistance and support levels are pivotal. #BCH currently struggles to approach the first significant resistance at $465.1, let alone test higher resistance levels at $473.2 and $473.5. On the downside, support levels are spotted at $448.7, followed by stronger supports at $428.6 and $427.9. These levels could play a crucial role if a downward break occurs. #write2earn🌐💹 #TrendingPredictions #BullorBear
The full analysis and trade strategy were originally posted on ecoinimist.com.