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Bitcoin Cash Analysis – January 31

Bitcoin Cash is currently ranked 9th in the CoinMarketCap ranking

THE Bitcoin Cash market, like the Bitcoin market, has witnessed restricted movements. The digital asset was costing $ 405 at the time of writing, but it was falling on the price scale. Meanwhile, market capitalization has dropped to $ 7.49 billion, placing it ninth on the CoinMarketCap list.

Bitcoin Cash 6 Hour Chart

Source: BCH / USD on TradingView

The Bitcoin Cash chart highlighted the $ 500 price journey to its current price of around $ 405. The descending channel has outlined this bearish price with its current support at $ 393.22, which can be contested once the currency falls within the bearish pattern.

Since the start of the descending channel, the 50 moving average has moved above the candles. At the time of this writing, the growing difference suggests that the price may continue its current trend.

Reasoning

The price of Bitcoin Cash has remained above the support level, but a drop is possible. The market has seen a bearish picture due to the increased volatility indicated by the divergence of the Bollinger Bands. Further price fluctuation along the channel may be a possibility. The signal line also remained above the candles, suggesting that the price was moving downwards.

The Relative Strength Index (RSI) stated an increase in selling pressure, since it was falling out of the equilibrium zone and approaching the oversold zone. If the price does not stay at $ 393, it may continue to drop to $ 336.

Conclusion

The Bitcoin Cash market has witnessed a gradual decline and may continue its downward journey unless unprecedented volatility hits the market. The price fell under the previous support and the descending channel formed supported at $ 366. If the BCH is put under selling pressure, it could fall to $ 336.

Source: AMBCrypto

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