Will BCH Price Continue Dipping?

Bitcoin Cash (BCH) price has been in a downtrend, forming lower lows, after the formation of annual at $329 at the end of June 2023. The cryptocurrency price has continued to drop slowly after facing rejection from the $254 critical price level. Buyers tried to regain momentum with an aim to recover the recent losses after the drop from an annual high of $329.

BCH price attempted several times to form a strong support and head upward but due to the confluence of selling pressure, the move was unsuccessful. The price formed support at $237 and started to rise but the price faced strong rejection from $254 which led to a break of the $237 support level.

Recently, Bitcoin Cash price formed a support at $222.5. The previous candle closed as a strong bullish candle and was successful in closing in the previous range of $237 and $254. However, the current candle is bullish but has not broken the high of the previous candle with indicates there is less follow-up momentum.

Buying Opportunities if Bearish Trend Line Breaks

If bulls can push the price above the high of the 7th August 2023 candle, it might rise toward the next resistance level of $254. The sellers are looking to ride the bearish wave and might enter the market if the price rejects the bearish trend line for new shorting opportunities.

Traders looking for buying opportunities should wait for the price to break above the bearish trendline before looking for bids. The market capitalization has increased by 0.31% to $4,697,537,932. The 24-hour trading volume is also down by 7.97%.

Will BCH Price Break Above the Bearish Trend Line?

The cryptocurrency price has jumped above 20, 50, and 100, and the 200-day exponential moving average indicates bullish momentum. Chaikin money flow (CMF) score has also surged above the 0 mark and currently trades at 0.09 suggesting increasing strength and capital inflow.

The relative strength index has advanced above neutral 50 and currently trades at 52.20 implying increased participation of buyers in the market. The Bollinger bands have contracted indicating a decrease in volatility.

BCH price has crossed above the 20-day SMA of Bollinger and if bullish momentum prevails, it might head toward the upper band which resides at $255.8. The long/short ratio is 0.98 with 49.65% longs and 50.35% shorts indicating a slightly higher selling position in the last 24 hours, according to Coinglass.

Conclusion

The market structure and price action of Bitcoin Cash has turned bearish after the formation of the annual high. Currently, the price is striving to break above the bearish trend line if successful, buyers might start looking for bids.

Technical Levels

Major support: $222.5 and $193
Major resistance: $254 and $283

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing