Bitcoin Cash price tried to recover above the $480 mark today after finding support at the $470 mark. The price has broken below the horizontal channel it has been trading in since the start of July and continues falling.
The broader cryptocurrency market observes a negative market sentiment over the last 24 hours as most major cryptocurrency assets record losses over the period. These include BTC and ETH that record a 2.6 and a 5.83 percent drop, respectively. Major players include SUSHI and THETA that record a 9.6 and an 8.7 percent decline, respectively.
Bears dominate the markets
Across the technical indicators, the MACD is bearish, as represented by the red histogram. Currently, the indicator suggests an increasing bearish pressure as the histogram enlarges. The 26-EMA is currently trailing behind the 12-EMA as both continue moving downwards. The 12-EMA is now diverging further from the 26-EMA suggesting strong selling pressure at the current price level.
The RSI is currently trading inside the neutral zone and has remained inside the zone since 29 July when the indicator briefly broke above the zone before falling again. Currently, the indicator is moving downwards with a steep slope showing strong selling activity taking place currently.
The Bollinger Bands were narrow until yesterday, but as the Bitcoin Cash price fell below the indicator’s bottom line at $480, the indicator has been expanding sharply. Currently, the indicator suggests sharp volatility for the Bitcoin Cash price with the mean line moving downwards highlighting the selling pressure.
Overall, the 4-hour technical analysis issues a strong sell signal suggesting sharp downwards movement soon. The analysis shows 16 of the 26 major technical indicators supporting the bears suggesting movement downwards for the Bitcoin Cash price. The remaining ten indicators are neutral, while none of the indicators support the bulls at press time.
The 24-hour technical analysis shares this sentiment to a strong degree with 15 indicators leaning towards the bears suggesting a drop in Bitcoin Cash price against one indicator suggesting bullish presence at the price level. Meanwhile, ten indicators sit on the fence and do not issue any signals at the time of writing.
What to expect from the Bitcoin Cash price?
Traders should expect the Bitcoin Cash price to continue moving downwards as the bears dominate the markets and the selling pressure continues to rise. As the price falls, the nearest support level lies at the $450 mark; however, the high selling pressure suggests that the support level will not hold, and the Bitcoin Cash price will continue falling.
As such, traders should expect the price to fall to the $450 mark before recovering. The price action may defend the $470 support level, however, the strong selling pressure would mean further consolidation at the level without any movement above the $500 mark.