Since it was developed in 2017, Bitcoin Cash (BCH) has been a strong player in the crypto market, after splitting from Bitcoin. The coin was created to provide faster transactions and lower fees through a larger block size, with the aim of BCH being to offer a solution to Bitcoin’s scalability issues. Nevertheless, the coin has encountered its own obstacles, such as additional divisions among its community and varying market results. As we near the middle of 2024, investors are closely monitoring BCH’s potential recovery and potential to reach $400 in June and July.
Current Market Performance of Bitcoin Cash (BCH)
Bitcoin Cash decreased by 8.83% in its value, over the past day, to trade at $352.41 today. This bearish trend has also been witnessed in broader timeframes, in which the token’s price dropped by 15.12% and 27.58% over the past week and month respectively.
Although BCH hit its all all-time high of $4,355.62 in December 2017, the price has since declined by 91.96%. With a market cap of $6.95 billion, the token is the 16th largest coin, according to Coinmarketcap. The rising trading volume by 64.8% over the past 24 hours, suggest a high volatility and investor participation.
Technical Analysis
At present, all relevant Exponential Moving Average (EMA) are indicating a bearish trend for BCH. The current price being below the 10-day EMA and 200-day EMA signifies a continuous downward trend.
The current Moving Average Convergence Divergence (MACDD) value for BCH is -26.03, showing a bearish crossover where the MACD line is under the signal line. This adverse value strengthens the pessimistic sentiment and indicates that the decline in price may persist without any substantial increase in momentum.
BCH’s RSI is currently 24.81, indicating that it is in the oversold zone (below 30). This shows that BCH is currently under significant selling pressure, which may result in a potential rebound.
Key Fibonacci levels are important for identifying potential areas of support and resistance. Support levels can be found at $330.61 and $392.52, with resistance levels set at $461.14 and $523.05. The price of BCH is currently close to these support levels, hinting that there may be buying interest, but a breakthrough of the resistance is essential for a continued rally towards $400.
Market Sentiment and External Factors
The broader market sentiment and external developments also play a crucial role. Notably, the impending repayment of Bitcoin and Bitcoin Cash to creditors of the defunct Mt. Gox exchange in July 2024 is a significant event.
The release of substantial BCH amounts into the market could introduce additional volatility, influencing price movements either positively through renewed interest or negatively through increased supply.
Conclusion
In conclusion, while the technical indicators for Bitcoin Cash currently point to a bearish outlook, the oversold Relative Strength Index suggests potential for a price correction. For BCH to reach and surpass the $400 mark in June and July, it will need to break through the significant resistance levels and sustain buying momentum amidst the external market pressures. Investors should stay vigilant and consider both the technical signals and broader market events when evaluating their investment strategies.
