The Bitcoin Cash price draws attention to a decline that started on January 16, and while Bitcoin fell below $ 35,000, the price of BCH reflects this decline in the charts. At the time of this writing, BCH is trading at $ 473, but it could record further declines.
Bitcoin Cash (BCH) price analysis
The chart above showed that the 50 moving average moved above the price bars, while the BCH price was trending down in a descending channel. This highlighted the cryptocurrency’s bearish trend, and the current price remains close to the $ 472 support, with a drop that could drive the price further down.
This provided the market with an opportunity to short the asset, but it may not provide a good enough margin to make a profit, as the price is already falling.
What do technical indicators tell?
As Bitcoin continues to fall, the BCH price will likely reflect the BTC price and will drop with a larger margin. Meanwhile, the Awesome Oscillator suggested that momentum is already starting to favor the long term trend over the short term trend. As the sale continues, the momentum can further support the sellers, as the indicator emphasizes.
As selling pressure increases, momentum may be in favor of sellers in the market as mentioned earlier.
As the market is a party with bears, sales in BCH may increase. This can provide an opportunity to make a profit. Investors may want to enter the market as the coin violates the $ 472 support. A potential downward movement could cause the asset’s value to reach the $ 459 price level.