Bitcoin Cash (BCH) remains well below its all-time high and continues to hover within an accumulation range that goes back seven years.
In recent trading, BCH has struggled to break higher and formed a descending triangle following rejection around $640 in early December.
Is the current crypto market outlook set to push Bitcoin Cash price to support at $300 or will bulls ride a new upside wave to retest recent supply reload zones?
Bitcoin Cash price today
The daily volume for Bitcoin Cash has dropped by more than 19% in the past 24 hours to just over $232 million.
Market sentiment, which saw Bitcoin (BTC) plummet below $98k earlier in the week, has contributed to the slide in altcoin prices. BCH is among these.
Per Coinglass data, open interest in Bitcoin Cash across derivative markets has declined more than 2.3% to about $255 million.
Incidentally, of the more than $550,000 BCH positions liquidated in the past 24 hours, most of it (at over $512k) are long bets on the altcoin.
What this means is that Bitcoin Cash at today’s levels around $413 – down 3% and 7% respectively in the past 24 hours and past week, is critical to both bears and bulls’ decisive moves.
A look at the BCH daily chart shows the cryptocurrency’s price is below a crucial support line.
This has happened since the altcoin dropped from highs of $640 on December 6, 2024.
Bitcoin Cash chart by TradingView
Sharp drops in the past month have seen BCH/USD touch the $400 mark, suggesting any further downward pressure could allow bears to target the $300 zone.
In terms of indicators, the Relative Strength Index is below the neutral point at 42.
This potentially means sellers are still strong following the recent bearish divergence.
Bitcoin Cash price on the daily chart also has the Moving Average Convergence Divergence indicator favouring sellers.
The daily MACD indicates a bearish divergence. A potential strengthening of downward momentum as shown by the histogram is there.
BCH price prediction
Currently, BCH posts a negative outlook with the descending triangle pattern.
However, zooming out helps identify a falling wedge pattern.
If bulls weather the downside pressure that engulfed risk assets this week, a likely bullish reversal will appear. Bears losing momentum will allow buyers to reload.
Areas of interest will be the descending triangle line at $500 and around $532.
New leg up for crypto will bring $600 and $700 into play.
On the downside, $300 is a major support zone.
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