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Bitcoin Cash (BCH) is bracing for a potential downside after a brief bounce from the trendline but failed to generate bullish momentum. Instead, the cryptocurrency is now facing a bearish extension, targeting a key support level of $288. With sellers regaining control, the market is on high alert, wondering if this new downward pressure will push BCH lower or if a bounce is still possible.
This article looks at the recent bearish expansion of Bitcoin Cash. Break down It is on the trend line. Analyze the main technical indicators, examine the market sentiment, Potential For further downside moves towards the crucial $288 support level. Also, this article will consider whether BCH can find stability amidst the increasing selling pressure or whether a deeper decline is ahead.
Bearish Extension Play: Bitcoin Cash’s Path to $288 Level
On the 4-hour chart, BCH is showing a noticeable downtrend. momentum As it approaches the 100-day simple moving average (SMA), the failure to overcome this important trend line indicates that pressure is intensifying and sellers are increasingly in control. This new downtrend could potentially lead the price to the $288 support level, increasing the likelihood of further declines.
Additionally, the Relative Strength Index (RSI) on the 4-hour chart recently fell to the 50% threshold. This decline suggests that bullish momentum is weakening, indicating that the market is turning negative, and strengthens the possibility of further declines in the BCH price.
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On the 1-day chart, BCH is on a downtrend towards the $288 support level after being rejected by the trend line. The bearish outlook is underscored by the formation of two consecutive bearish candlesticks. Also, the fact that the price remains below the 100-day SMA is a dominant negative. market It indicates that sentiment is declining and downward pressure may persist, which could lead prices to decline.
Finally, the RSI signal line, which recently rose to 54% on the 1-day chart, is currently testing the 50% limit once again, suggesting that positive momentum is fading and the market could turn bearish again. A drop below the 50% level would confirm the change in sentiment towards selling pressure, which could support a continued downtrend in the BCH price.
BCH’s New Challenge: Exploring the Downtrend Path
Bitcoin Cash (BCH) is facing significant downward pressure as it moves towards the $288 support level. If the downward pressure continues and the price breaks this support, password The asset may experience further declines and may drop to the $211 support level and explore additional key support zones beyond it.
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Conversely, if BCH succeeds, I’m holding on If it is above the important support level, it signals a potential recovery and could head towards the $367 resistance level. A break above this level could push the price higher, testing the $457 resistance level and possibly extending towards other important resistance levels.
At the time of writing, Bitcoin Cash was trading at around $329, down 2.71%. With a market cap of over $6.5 billion and a trading volume of over $158 million, BCH is down 2.78% in market cap and has seen a 23.14% drop in trading volume over the past 24 hours.
Featured image from Unsplash, charts from Tradingview.com