Bitcoin cash has dropped from its peak of $1650 and has reached a low of $259. The coin has had a hard time maintaining its prices and has been under constant selling pressure. The coin has once again reached a long consolidating zone around the $300 – $250 price range and is trying to take some support around these prices. It was from this zone that the bull run of November 2020 started, which took Bitcoin Cash prices to their high of $1650. If we see increased buying activity around the consolidative zone, we may find a good enough setup to buy BCH further increase prices.
A downtrend line drawn from the BCH’s high shows us that prices are coming out of the range of this downtrend zone. Near-term resistance stands at $400, which was the last swing high on the daily time frame, and our next price obstacle needs to be crossed to see a healthy price increase on the counter.
Without increasing prices and a good increase in trading volume to support the sentiment of a near-term upswing, investors should be skeptical while opening new buy positions as the BCH prices may drop further. We can see immediate daily resistance in the $400 – $350 price zone, which was recently tested. Bitcoin Cash price was pushed back from this zone, and bears appeared to be dominating the markets, taking prices back to $300.
The MACD oscillator has started to diverge on the daily time frame, suggesting a slowdown in the momentum of the bear market for now, but fresh selling may put pressure on the BCH coin if the buyers do not pick up prices soon. Based on the current momentum and Bitcoin Cash price prediction, the coin might reflect flattish momentum before any sharp movements.
On the weekly chart, the coin has uplifted from the support zone with the formation of bullish candles in the last two weeks. The bulls need to push the price up above the swing high for an up-trending market in the long run.