Bitcoin Cash price is trading at around $216 after the entire cryptocurrency market suffered a huge meltdown. Will the bearish trend continue?
Yesterday, September 25, the price of Bitcoin Cash (BCH) was in a bearish trend trading below the 12-day and 26-day Exponential Moving Averages (EMAs). On September 3, Bitcoin Cash price, along with other cryptocurrencies suffered losses as the bears broke the $330 and $300 support levels to reach the bearish zone.
The crypto plummeted below the $285 and $270 support levels. The market even tested the $200 support level and a low was formed near $199 level. The price is now consolidating below a long-term trendline which could determine its fate going forward. At the time of writing, the price of BCH is trading at the $216 level.
On the upside, if more buyers emerge, the crypto’ price will recover towards the $240 or $250 resistance. Conversely, if the bulls fail to push the price upward, initial support is near $210. The main support is near the $200 level.
Meanwhile, the Moving Averages Convergence Divergence (MACD) indicates that price is in a bearish momentum and sell signal.
On the 1-hour chart, BCHUSD is in a bearish trend below the 12-day and 26-day EMAs. Traders can expect an upside correction in the short term, but the larger trend is down towards $200 and $180 levels. On April 2, the bears pulled the price down to the $165.00 level, the strongest form of technical support before recovering.
In the meantime, the market is in the oversold region of the daily stochastic but above the 20% range. This indicates that price is in a bearish momentum and sell signal.
Arathur Stephen is not registered as an investment adviser with any federal or state regulatory agency. The information above should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies. The information is solely provided for informational and educational purposes. Always seek the advice of a duly licensed professional before you make any investment.
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