- Bitcoin Cash price plunges below $400 as the entire crypto market is marred with losses.
- Multiple technical signals paint doom for BCH.
The entire cryptocurrency market has been under an extended bearish leg which has stretched over the last three months. Major cryptocurrencies are testing new lows as Bitcoin plunged under $30,000 for the firs time since June 22. The bearish wave has also seen Ethereum drop to areas around the $1,700 support level.
Bitcoin Cash price bulls’ weekend efforts of hitting levels above $450 were stopped by the 20-day Simple Moving Average (SMA) adding credence to the massive selloff. The breakdown which started during the Asian session on Monday pushed BCH to $384, a level explored on June 22. Let’s see what how the technical picture looks like.
Bitcoin Cash Price Chart Sends Several Sell Signals
At the time of writing, BCH teeters around $388 after losing 10.5% over the last 24 hours. The massive overhead pressure has seen Bitcoin Cash’s 24-hour trading volume rise to $3.06 billion, according to CoiGecko data. The seven-day 18% cumulative loss highlights the general downtrend that that BCH has been experiencing.
The Relative Strength Index (RSI) lost ground as it entered the oversold region. This trend following oscillating indicator tells the strength of the momentum. The four-hour chart shows that RSI is currently at 26.60 and indicates that the sellers are currently in firm control of the market.
Therefore, the downward trend of the Bitcoin Cash price is set to continue unless bulls find some robust support to hang on to.
Bitcoin Cash Price (BCH/USD) Four-Hour Chart
Similarly, the Moving Average Convergence Divergence (MACD) indicator adds credence to this bearish outlook. It is a trend following indicator that calculates the momentum of the trend.
The MACD sent a sell crypto signal on Monday when the MACD line (blue) crossed below the signal line on Monday. The odds for reversing BCH losses dwindled as the MACD moved further into the negative region away from the midline (0.00).
Looking Over the Fence
On the upside, on-chain metrics from the in/Out of the Money Around Price (IOMAP) model by IntoTheBlock reveals that Bitcoin Cash price is sitting on very crucial support between the $378 and $388 range. Within this range, approximately 36,010 addresses previously bought around 222,510 BCH.
It is essential that this Bitcoin Cash price bulls defend this support zone to ensure that any further lows are not recorded. Note that a daily closure above the $400 psychological level is likely to call more buyers into the market as they focus on overcoming the obstacles towards $500.
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Nancy Lubale
