The bears are firmly back in control of the Bitcoin cash price and are pushing for a break of the trend line support. Bitcoin Cash (BCH) is fighting to regain upside momentum on Tuesday following Monday’s 3% decline. The crypto is trading at $560.40, a seven-day decline of 10% and -6% in November. There are currently 18.9 million coins in circulation, which a market cap of $10.6 billion, ranking BCH the 22nd-largest cryptocurrency behind Algorand (ALGO).
Like many cryptocurrencies, BCH followed Bitcoin and Ethereum higher at the start of the month. However, unlike BTC and ETH, which reached new highs, BCH woefully underperformed. Despite the cryptocurrency market soaring to a record $3 Trillion in value, the price failed to surpass the September high. Furthermore, Bitcoin’s reversal from $69k to $56k triggered a 25% decline in BCH. As a result, the price is in danger of breaking down below a rising trend, which could heap more misery on the long-suffering bulls.
The daily chart shows BCH is below the major moving averages and approaching trend support at $540. In my opinion, a close below trend could instigate a return to the September lows around $472. At the same time, a steeper sell-off would target the July trough at around $385.
On the other hand, Bitcoin Cash should recover the recent weakness if the trend line holds out. In that event, the price needs to clear the 200-Day Moving Average at $627 to gain bullish momentum.
Considering Bitcoin appears to be breaking down, the bearish scenario looks likely. However, the sell signal is not activated until the price closes below $540 on the daily chart. On that basis, the best course of action is to see how BCH ends today’s session.
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This post was last modified on Nov 23, 2021, 05:49 GMT 05:49