Based on recent charts, the digital asset’s price might continue to drop. The currency will face resistance around $600, $650, and $700. Fortunately, BCH support levels hold at $350, $300, and $250, which will prevent further drop down the line. Since it hit an all-new high days ago, the crypto lacked strong support to stabilize the position and continues to trails downward even with the new price.
The short-lived peak could signal an unclear outlook for the cryptocurrency in times to come. For the asset to still retain its recent gains it needs to stabilize its current point to prevent its price from going down. The asset holds strong support around $400, but if there is a rejection, that could cause its below $400 support level to take the lead.
Price prediction based on new movement
Currently, the crypto stands at the $450 price range, which could break out any minute. The Analysis shows that upward movement of BCH pricing could help the digital asset add significant gains, and the bulls pushing the price even higher to hit more significant resistance points. When the crypto gains bullish momentum, that will make it past some resistance level.
Looking at the crypto movement, the bears make the possibility of an upward trend unlikely. On the bright side, the $440- $400 levels show a strong commitment to preventing costly downturns despite bears selling off holdings at a surprising rate. Similar to the Bitcoin movement, which faced some difficulties moving up due to miner’s rapid sell-off.
Some linked BTC’s failure to significantly drive up as the cause of downward trends for altcoins. If BCH faces more selling pressure, the support will no longer hold it above the $400 price range, and it will depend on the next support level, $350, to keep it steady.
Warning signals in charts
Following recent charts, sellers have to reduce the selling pressure to save the digital asset from a total crash. Within the last few days, cryptocurrencies continue to fall despite the market bulls holding position. Bitcoin and Ethereum are showing signs of recovery since their crash alongside other altcoins in the industry.
Even with the recovery, there is no sign that the prominent cryptos will go back to their previous highs. Investors took the opportunity of the iconic peak to the disadvantage of the market because since the sell-off, most digital assets have downward chart movements.
The rise of institutional investors increased the chances of profit-taking because most of them entered the industry last year. Since then, Bitcoin price doubled, meaning that investors would gain massive returns from their investments. Still, the industry is forging ahead with the recent bull market, trying to regain momentum for the assets to move upwards.
Analysts describe the current happens involving ETH and BTC as the push for investors to look into other cryptocurrencies to face lesser risks with larger returns. The altcoin season will help smaller coins compete against already established cryptocurrencies to give interested holders varieties of options.