Bitcoin Cash (BCH) dipped below the key $620 support mark on Friday, January 23, pointed out by the crypto analyst Crypto Pulse, indicating the continuation of bearish momentum as the BCH token broke down from the rising price channel formation observed in the opening hours of the session. According to TradingView, BCH is now trading at approximately $597.
Source: CryptoPulse
The breakdown in Bitcoin Cash’s price led to a change in short-term market sentiment, with the $525 level being viewed as the next major level to support the token’s price. The failure to rise above $620 might lead to increased volatility, while a rise above $620 would support the asset’s overall structure.
Also Read: Bitcoin Cash (BCH) Surges to $599: Could Hit $804 by 2026!
RSI & MACD Indicators Point to Neutral Momentum
According to the TradingView data, shared on Friday, January 23, the RSI is in the neutral position, as the current RSI is at 54.36. Although the RSI is in the neutral position, the fact that the RSI is not on either the oversold or overbought side gives room to the price to move in either direction.
Source: TradingView
The Moving Average Convergence Divergence (MACD) displays positive momentum, as the blue line is above the orange line. However, the decline in the green bars on the histogram indicates that the positive momentum is declining, so the Bitcoin Cash market is expected to turn if the momentum continues to decline in the near term.
BCH Remains Supported Above Key Moving Averages
The Bitcoin Cash asset has been performing favorably, as it has been trading above its 20-week, 50-week, 100-week, and 200-week Exponential Moving Averages. However, the fact that the asset has failed to hold its support at the $620 level may change its direction, which may result in a test of lower levels of support.
Source: TradingView
The Bollinger Bands indicate that the upper band is at $661.53, which could serve as a resistance level. The lower band is at $474.98. Since the current price is near the middle band at $570.78, the price is still volatile. A drop past the support level at $525 could indicate a drop, and a rise towards the upper band could indicate a rise towards $661.53.
Why This Matters
Bitcoin Cash has broken down its critical support price of $620, and a failure to maintain that price may lead to downward price movements, which could affect its future price movements.
If the price does not recover to the level of $620, there is a possibility of a wider sell-off. Thus, it is imperative that traders keep an eye on the level of $525, where there could be opportunities for a rebound.
Also Read: Bitcoin Cash (BCH) Extends Bullish Momentum, Eyes $740 Breakout Target
