Bitcoin Cash Price Forecast: Key Levels to Monitor After Recent Gains
Bitcoin Cash (BCH) experienced a 5% decline on Monday after a remarkable 45% increase last week. Despite maintaining a level above $345, BCH traders face significant liquidation risks if prices fall below $339. The recent bearish sentiment, exacerbated by external political factors, raises concerns over potential further declines.
Following last week’s impressive 45% surge, Bitcoin Cash (BCH) experienced a 5% decline on Monday, trading above the $345 level. This drop contrasted with the more significant losses seen in Bitcoin (BTC), which fell over 8%. Coin derivatives data indicates that BCH bull traders face substantial liquidation risks if prices dip below the crucial $339 level, hinting at a possible downturn if negative sentiment persists.
Despite the downturn, Bitcoin Cash has demonstrated a degree of resilience, managing to hold its gains better than Bitcoin amidst adverse market conditions. A recent decline in BCH was linked to increased bearish sentiment sparked by the U.S. administration’s failure to present a crypto budget at the recent White House Summit, coupled with negative global financial signals from U.S. Nonfarm Payrolls (NFP) data.
Current trading activity indicates BCH bulls remain largely profitable, with many short-term traders reticent to exit their positions. However, market data from Coinglass reveals that bearish sentiment is gaining traction, as evidenced by the $9.4 million in short positions against only $3.8 million in long contracts. This creates a precarious situation, particularly if BCH’s support at the $339 mark is breached.
The price of Bitcoin Cash has shown bearish trends recently, with a 4% drop over the past day. The daily chart reveals that BCH struggles to maintain footing above the $340 support zone, with Bollinger Bands indicating potential volatility. After facing rejection at $392, there remains heightened risk that further sell-offs could ensue, depending on market movements.
Moreover, the recent drop in BCH prices has seen an increase in selling pressure as leveraged long contracts unwind. The emergence of a Death Cross indicates a prevailing bearish outlook for BCH unless significant buying momentum can reclaim support levels. The potential returns remain promising, with a rebound possibly leading up to $450 should buyers retake control.
In conclusion, Bitcoin Cash (BCH) currently sits at a critical juncture after substantial gains last week. While it has experienced a pullback, the resilience displayed by traders may protect against significant losses as long as key support levels are maintained. However, the overriding sentiment leans bearish, and failure to stabilize around $340 could trigger further declines, underscoring the necessity for traders to remain vigilant. The future movements of BCH will largely depend on market sentiment and traders’ responses to price fluctuations.
Original Source: www.fxstreet.com
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