Bitcoin Cash Price Prediction: 2 Key Levels to Watch Next

Summary:

In this Bitcoin Cash price prediction, we explain what to expect after the coin declined sharply in the overnight session

The Bitcoin Cash price has declined for the past four consecutive hours as cryptocurrencies erase some of the gains made early this week. BCH is trading at $495, which is substantially below this week’s high of $535. Its total market capitalization has dropped to more than $9.3 billion making it the 13th biggest cryptocurrency project in the world.

Bitcoin Cash news. Bitcoin Cash has a close relationship with Bitcoin. Indeed, Bitcoin Cash emerged from a hard fork of Bitcoin. As a result, many retail traders prefer buying BCH because of its relatively cheaper price than the main Bitcoin.

For one, while Bitcoin Cash is trading at $495, the main Bitcoin is trading at more than $33,000. This relationship is similar to that of Ethereum and Ethereum Classic and that of gold and silver. As such, the smaller BCH tends to be more volatile than Bitcoin.

Bitcoin Cash price is falling today as investors react to the relatively hawkish Fed minutes that helped push the US dollar higher. The minutes show that some members of the Fed are inclined to start tapering asset purchases while other members think that it is too early to do so. Therefore, there are concerns that the bank will keep being more hawkish. The US dollar index rose to the highest level since April after the minutes. Cryptocurrencies tend to decline when the US dollar rises and when the Federal Reserve is hawkish.

Bitcoin Cash is also falling after China continued its crackdown on cryptocurrencies. The country’s Central Bank shut down a software company that provides services to crypto companies. It also directed banks not to do business with companies that provide services to cryptocurrency firms.

Bitcoin Cash price prediction

The four-hour chart shows that the Bitcoin Cash price has been under pressure recently. It is trading slightly below the descending trendline shown in blue. The coin is also at the same level as the 20-day VWMA. It has also faced substantial resistance at the important level at $542.

Also, it has formed what looks like a triple-top pattern whose neckline is at $476. Therefore, Bitcoin Cash will likely remain rangebound for now as traders ponder the next moves. Any drop below the support at $476 will open the possibility of the coin falling to $450.