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- 1 Bitcoin Cash price has been in a downtrend forming lower lows since it made a yearly high at $329.
- 2 BCH price has crossed the 20-day EMA negatively.
- 3 The pair could rise higher if it could break the resistance level of $250.
BCH price experienced substantial growth during June 2023, rising roughly 206% from the low of $107 and forming a yearly high at $329. After the formation, the cryptocurrency price entered into a downtrend in order to correct the bullish move.
The cryptocurrency outperformed Bitcoin with 2X gains within that time frame. Bitcoin Cash rallied primarily due to the wall-street-backed cryptocurrency exchange EDX markets going live and listing the cryptocurrency. Bitcoin Cash was the biggest beneficiary of the EXDM listing compared to the platform’s other coins including Bitcoin, Ethereum, and Litecoin.
Currently, the price is stuck in a consolidation zone ranging between $236.5 and $250 since 21 July 2023. BCH’s price is hovering near the support level of $236.5. The previous candle has closed as a weak bearish candle. If the current candle, which is bullish, shatters the high of the previous candle, then the price might head towards $250.
If a candle can break and close above $250, there is a possibility that the price might head toward the next resistance level of $283. On the other hand, if bears push the price below $236.5, it might melt toward the next support level of $221 causing a drop of 6.24%.
Miner and Whale Investors of Bitcoin Cash Shifts Their Stance
After the meteoric rise in June 2023, Bitcoin Cash failed to provide the same impressive results in July 2023. Miner and whale investors are now taking a bearish stance. According to IntoTheBlock, a blockchain analytics platform, BCH miners took advantage of the bullish rally and offloaded 1.12 Million tokens in the past month.
As of July 25, 2023, miners’ cumulative reserve of BCH has dropped to 6.61 Million BCH from 7.73 Million BCH (June 24, 2023).
Bitcoin Cash’s whale investors who witnessed the pessimistic trend of miners also started to reduce their trading activity. From July 14 to July 25, 2023, the whale transaction volume decreased by 76%.
Will BCH Price Decline to the $200 Level?
Chaikin money flow (CMF) score has dropped to -0.20 implying that there is a weakness in the price. Since 19 July 2023, CMF has been trading below the 0 mark. The cryptocurrency price has crossed the 20-day EMA negatively suggesting that bearish momentum is slowly rising in the price.
The relative strength index has declined below the 50 mark and currently trades at 48.73, denoting that the price is currently in neutral territory and the possibility of consolidation is present.
The long/short ratio is 1.04 with 51.2% longs and 48.8% shorts indicating a higher number of bulls’ positions in the last 24 hours. The bulls are trying to protect the price from further downfall.
Conclusion
The market structure and price action of Bitcoin Cash are bearish as prices started to form lower lows and entered into a downtrend after forming the yearly highs.
Technical Levels
- Major support: $221 and $192
- Major resistance: $250 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.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
