Bitcoin Cash: How Feasible is the Bears’ Target of $400?

Summary:

Bitcoin Cash remains under pressure following the decline in June's cryptocurrency trading volumes. Since mid-May, it is down by 72.68%.

Bitcoin Cash remains under pressure following the decline in cryptocurrency trading volumes. Notably, a string of bearish news in the recent past has lowered investors’ interest in digital currencies. The heightened efforts by the Chinese and UK governments to crack down on cryptocurrencies is one of the underlying reasons.

Key crypto exchanges such as Coinbase, Bitstamp, and Binance had trading volumes reduce by over 40% in June. This is according to the recent data availed by CryptoCompare. Nonetheless, Kaiko’s Clara Medalie has indicated that the trading volumes are still significantly higher than they were a year ago.

Since mid-May, Bitcoin Cash has recorded a price decrease of about 72.68%. During the same timeframe, Bitcoin price and Ethereum price has plunged by 47.14% and 56.86% respectively.

BCHUSD technical outlook

Bitcoin Cash is still on a downtrend as the price remains below the crucial support-turn-resistance level of 500. It is currently consolidating along the support level at 445. At the time of writing, it was down by 1.44% at 449.53. On a 4-hour chart, it is trading below the 25 and 50-day EMA.

Bitcoin Cash price is likely to seesaw around the current support level of 445 as the bears target a one-month low of 400. On the flip side, it could rebound to find support at 500. For the crypto to reverse its current price trend, the bulls will need to push it past the 200-day EMA at 550.