This article is available in Spanish.
Bitcoin cash (BCH) is bracing for a possible downturn after a brief trendline bounce failed to create bullish momentum. Instead, the cryptocurrency is now facing a bearish extension, with sights set on the key support level at $288. With sellers regaining control, the market is on high alert, wondering if this renewed downward pressure will push BCH even further or if a recovery is still possible.
This article examines Bitcoin Cash’s recent bearish expansion after it failed break above the trend line. It analyzes key technical indicators, examines market sentiment and assesses the potential for a further downward move towards the critical support level at $288. Additionally, the article examines whether BCH can find stability amid increasing selling pressure, or whether a deeper decline lies ahead.
Bearish extension in play: Bitcoin Cash path to the $288 level
On the 4-hour chart, BCH is showing a notable bearish trend momentum as it approaches the 100-day Simple Moving Average (SMA). The inability to overcome this critical trend line indicates that pressure is increasing, with salespeople increasingly taking the lead. This renewed downside force increases the likelihood of further declines, potentially pushing the price towards the $288 support level.
Furthermore, the Relative Strength Index (RSI) on the 4-hour chart has recently fallen towards the 50% threshold. This decline signals waning bullish momentum and signals that the market may be shifting toward negative sentiment, reinforcing the potential for further declines in the price of BCH.
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On the 1-day chart, BCH is showing a bearish trajectory towards the $288 support level, following a rejection at the trendline. The pessimistic outlook is highlighted by the formation of two consecutive bearish candlesticks. Also, the fact that the price remains below the 100-day SMA reinforces the prevailing negative market sentiment and indicates that downward pressure may continue, which could drive the price lower.
Finally, on the 1-day chart, the RSI signal line, which recently rose to 54%, is now retesting the 50% threshold, indicating that positive momentum may be waning and the market may be returning to a bearish phase. . If the RSI falls below the 50% level, it would confirm a shift in sentiment towards selling pressure, potentially supporting the ongoing downtrend in the price of BCH.
BCH’s New Challenge: Navigating the Bearish Path
Bitcoin Cash (BCH) is facing notable downside pressure as it moves towards the $288 support level. Should bearish pressure persist and price break through this support, the cryptocurrency assets could see further declines, possibly falling towards the $211 support level and exploring additional key support zones beyond.
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Conversely, if BCH succeeds delay above the critical support level, this could signal a potential recovery and move towards the $367 resistance line. A breakout above this level could send the price higher, potentially testing the USD 457 resistance and expanding into other key resistance areas.
At the time of writing, Bitcoin Cash was trading at around $329, reflecting a decline of 2.71%. With a market cap of over $6.5 billion and a trading volume of over $158 million, BCH has seen a 2.78% drop in its market cap and a 23.14% drop in trading volume over the past 24 hours.
Featured image from Unsplash, chart from Tradingview.com
