- BCH price has declined by 25% in the past 2 weeks indicating bears’ grip.
- Bitcoin Cash price has developed a fake breakout and showed a sharp selling move.
From the beginning of 2024, the BCH price has been in a bullish trend. The bullish trend was interrupted near the $700 hurdle and turned into a bearish trend. The price has dropped below the key moving averages.
In the last week of July, the Bitcoin Cash price exceeded the 200-day EMA in a fake breakout. After the fake breakout, BCH underwent strong selling pressure.
Since April, the digital asset price has been in a bearish trend. The bearish trend was halted near the $300 mark and gained short term bullish momentum. Sellers reattempted to dominate but buyers have shown strength.
Bitcoin Cash crypto was being traded at $348.60 at press time, surging by 5.54% in the past 24 hours. The market capitalization was $6.88 Billion and the 24-hour trading volume was $226.91 Million.
Is BCH Price Ready to Shoot Up Soon?
#BCH/USDT breaks the diagonal trendline and holds it above it in 1-hour TF!
— TraderAAG (@TraderAAG) August 9, 2024
A bullish momentum is expected here. $BCH local support level is PWL $330.7, and the resistance level is PDH $372.#BitcoinCash #BCHUSDT #BCH pic.twitter.com/xn20hd1neF
A source on X claimed that BCH broke out from a descending trendline. The price is holding over the trendline in a 1-H time frame, bullish momentum is expected. Exceeding the $372 level would be a bullish sign.
Technical Analysis of BCH Price Over 1-D Timeframe
On the daily time frame, the Bitcoin Cash price has formed a double-bottom pattern and has reached the 20-day EMA. The price managed to defend the $300 hurdle twice since July.
If the digital asset price manages to surpass the 200-day EMA, buying would be seen. Suppose the trading volume supports the bullish momentum, then it may boost the bullish momentum.
On the other hand, if the crypto faces resistance from the 200-day EMA and slips below the $300 mark, profit booking would be seen. Profit booking on a higher scale might lead to sharp selling pressure.
Turning to the technical indicators, the MACD has displayed a death crossover with the signal line and the histograms turning red. The crypto was struggling below the key moving averages, showcasing bearish momentum.
BCH Price Analysis
Considering the recent bearish trend and the resistance at the $300 hurdle, BCH price seems to be facing significant challenges. The MACD showing a death crossover and the price struggling below key moving averages, highlights bearish momentum.
However, there are potential bullish signals, such as the double-bottom pattern formation and the possibility of a breakout from the descending trendline. It will be crucial to monitor the price action around the $300 mark, the 200-day EMA, and the trendline breakout to gauge the potential direction of the trend.
The bullish trend in BCH crypto could be halted near the $400 and $520 levels. The price may take support at the $300 and $260 marks.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
