Bitcoin Cash (BCH) looks poised to maintain its overall bearish outlook. The coin is facing significant downward pressure as sentiment in broader crypto remains uncertain at best. Although BCH has largely been trading sideways over the last few weeks, we do not see enough upside for a bullish surge in the near term. Here are some important highlights:
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At the time of reporting, the coin was selling for $431, significantly down from its monthly highs of around $482.
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Analysts see the $500 mark as a big psychological barrier for investors, but a possible rally towards that in the near term looks unlikely.
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BCH is also trading below its key moving averages, suggesting a bearish alignment is in force at the moment.
Data Source: Tradingview.com
Bitcoin Cash (BCH) – Price action and predictions
In November, BCH managed to hit $732, its highest price in two months at the time. But this was a short-term rally as the coin tumbled thereafter. BCH is currently priced at $431. We see the next support at $413.
If bear pressure persists, the coin could easily retreat towards that price. Overhead resistance, on the other hand, is at the $489 mark. We also noted that BCH is trading below its crucial 25-, 50-, and 200-day exponential moving averages.
With sentiment in the crypto market uninspiring right now, we don’t see this bearish outlook breaking in the near term. If anything, once BCH drops past the $413 support, then further decline below $400 is inevitable.
Should you buy Bitcoin Cash (BCH)
Bitcoin Cash (BTC) was built to provide secure and fast digital payment systems. It has seen wide adoption and will continue to rank as one of the most innovative crypto projects. However, right now, it’s not the best time to buy. I’d wait till the bearish outlook abates before buying in.