BCH price has been subject to light trading for about a week. The range-bound trading observed in this altcoin is comparable to that of other cryptocurrencies. For instance, Bitcoin is holding steady above $40,000 after dropping below it momentarily at the beginning of the past week. However, for two weeks now, the previously steady support zone of $45,000 has remained evasive.
The leading crypto by market cap tends to shape the path for altcoins. Solana and Ripple are some of the other cryptos on a similar trajectory. Investors are looking for a sign that the cryptocurrency market is ripe for a bullish reversal.
BCH price forecast
A week ago, Bitcoin Cash dropped to a one-year low at 348.08. Since then, it has risen by about 10%. For about a week, it has been trading within a rather tight range.
Earlier on Tuesday, it rose to a one-and-a-half-weeks high of 399.82 before pulling back. Notably, 400 has been a major resistance level for the altcoin in January. At the time of writing, it was down by 0.14% at 380.07.
In the ensuing sessions, I expect BCH price to remain under pressure as the bulls lack enough momentum to push the digital asset back to the psychologically crucial zone of 500. Notably, the once steady support level has turned evasive since the plunge recorded in early December.
On a four-hour chart, the crypto is trading slightly below the 25 and 50-day exponential moving averages; an aspect that substantiates the bearish outlook. In the short term, BCH price will likely continue to trade within the range of between 372.61 and 400.24. Past the current support zone, the bears will have an opportunity to retest the month’s low at around 360.
On the upside, it may rebound past the range’s upper border to 413.50 before pulling back to within the horizontal channel. A move above that level will invalidate the bearish thesis.