Bitcoin Cash (BCH) was trading below the $600 mark after a quiet period. The price fell, resulting in a correction rather than the start of a new bear trend. BCH was close to the demand zone. Traders monitored the market to confirm the direction.
As of press time, BCH is trading at $579.47. The price is down by 0.31%. The daily trade volume is up by 73.99%, currently standing at $379.67 million. The market capitalization is down by 0.67%, currently valued at $11.53 billion.
Source: CoinMarketCap
BCH Faces Resistance as Momentum Shifts Lower
As noted by analyst CW, BCH was showing a bounce after touching a buy wall. The sell wall at $600 was still in place. This had to be cleared for the price to move towards $640. This resistance was still acting as a cap for BCH’s price movements.
Source: X
Token Talk, a crypto analyst, mentioned that BCH had broken the ascending channel. The token had been trading in the ascending channel since November. The token had broken the channel, paving the way to the lower support levels. The cryptocurrency is likely to trade lower, possibly reaching the $450 mark.
Source: X
Also Read: BCH Faces $620 Test: Can Bulls Reclaim Support or Will Bears Take Control?
According to CoinLore data, the current support for BCH is at $569.77. The first resistance point was at $595.84. The subsequent resistance points are at $615.92 and $638.56. If the price falls below the support level, the next support would be at $548.91.
Derivatives and Indicators Show Weakening Momentum
CoinGlass data shows that volume increased 67.47% to $555.82 million. Open Interest declined by 1.60% to $699.43 million. The OI Weighted Funding Rate was recorded at 0.0021%.
Source: CoinGlass
The Relative Strength Index (RSI) was at 42.80, while the signal line was at 45.13. The momentum reading showed low buying pressure. Cryptocurrency was in the lower neutral zone.
The Exponential Moving Average (EMA) for the 20-day period was 596.0, which is the nearest resistance level. The EMA 50 was at 591.2, indicating a resistance level for the token because it is higher than the current price. Bitcoin Cash has to break past this level to change its momentum.
EMA 100 was at 575.0, which is the nearest support level. EMA 200 was at 546.6, which is the lower support level. The token was trading in this zone.
Source: TradingView
Cryptocurrency is at a critical juncture on its chart. It has to hold past $569.77 to stabilize. It also has to go past $600 to change its short-term sentiment. A clear trend will emerge only after one of these levels is breached.
Also Read: XRP Price Falls to $1.85 As Derivatives Pressure Intensifies
