Bitcoin Cash’s downside has been confirmed as it falls to $1,200.
- Bitcoin Cash failed to maintain its price above $1,300 this week, falling back to the $1,200 range
- Currently, BCH is trading at $1,235, but it may decline back down to near $1,200, which is now a key support level
- BCH failed to hold above $1,360; in the short term, it should first test a resistance at $1,250
Bitcoin Cash — Short-term Downside Confirmed
Last week, we established a major resistance level for Bitcoin Cash at $1,310, which was surpassed over the weekend. However, BCH started to pull back since Sunday and is now trading at $1,235. Further downside is evident as several bearish trends have formed since hitting its daily high of $1,285. The next move could see BCH test a key support at $1,200 once more.
For the rest of the day, we will likely see BCH trade in a range between $1,215 and $1,235. This can be seen as a price correction from the gains we saw over the weekend. Chances are further downside moves are expected as shown in the recent candlestick patterns.
On the technical analysis part, the MACD is giving a weak bearish signal, while the momentum indicator is also echoing the same sentiment.
Looking at the Technical Indicators:
- Hourly MACD — BCH is now in a bearish zone
- Momentum — A bearish trend is forming
- Major Support Level — $1,200
- Major Resistance Level — $1,250
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