Bitcoin Cash Price Analysis

Bitcoin Cash (BCH), the 4th largest currency my market cap currently seems to be in the company of bears. This $18 billion asset’s price is down by a good 58% since the beginning of the year. However, it is also up over 66% since its lowest close so far this year (April 1st). Currently, the market sentiment regarding Bitcoin Cash price movement remains range-bound within the key resistance ($1,766) and support ($582) levels. Presently trading at around $1052 (on May 25th, 7:00 UTC), Bitcoin Cash price analysis reflects a short-term downswing in price, with no immediate bull signal in sight.

Bearish Crossover in Sight

Let’s first firm up our views on the current market sentiment. Technical indicators reflect an upward sloping 50-day SMA (simple moving average) line and a downward sloping 14-day SMA. Hence, continuing with their respective trends, these moving average indicators are likely to lead to a bearish crossover. The 14D SMA crossing the 50D SMA from above would indicate a short-term bearish investor sentiment. Moreover, lower highs and lower lows being recorded recently also suggest a bearish sentiment in the market for now.

These Support Levels Could Be Critical in Case of a Reversal

We also saw BCH breaking a key support level of $1,766 on January 16th. This has now converted into a key resistance level for BCH. However, price movements for BCH currently seem more in the mood to play with the immediate and key support lines; at $878 and $582, respectively.

Moreover, the strength of movement of this recent downswing isn’t too strong, as validated by the momentum indicator, the RSI (relative strength index). The RSI is presently around a 39.5 index level, below the average 50, reflecting weak strength in movement. So, investors may expect a reversal at support levels.

Medium-Term Market Sentiment Positive

Over the medium-term, however, BCH has indicated an overall change in market sentiment from being bearish to bullish on April 4th, when it broke past the downward sloping trend line (in dark green above). The crypto has already come up with three short-lived bullish swings since the beginning of the year; with the 3rd strong enough to alter the trend. And for now, we’re seeing the price continuing above and clear of the medium-term downward sloping trend line, indicating that the overall market sentiment over a longer-term horizon is positive.

So, bargain hunters looking for critical entry points to gain or increase exposure to the crypto asset should watch the immediate and key support levels of $878 and $582, respectively.