The BCH price is struggling to find direction as investors wait for a catalyst. Bitcoin Cash is trading at $646, where it has been in the past few days. This price is about 20% below the highest point this month. It has a total market capitalization of more than $12 billion and is the 17th biggest coin in the world. Recently, it has been overtaken by the likes of Avalanche, Solana, and LUNA.
What next for Bitcoin Cash?
The BCH price reacted mildly to this week’s economic numbers. The data showed that American inflation eased in August while retail sales boomed. These numbers are important because they have an impact on the Federal Reserve.
Ideally, with the American inflation above the Fed’s target of 2.0% and with the unemployment rate falling, there is a likelihood that the Fed will adopt a hawkish tone in the coming meeting. This meeting will take place on Tuesday, with the decision expected to come in on Wednesday. The Fed decision is important because it has an impact on all assets, including the US dollar.
Still, a hawkish Fed will not likely have a major impact on the price of Bitcoin Cash. Besides, the situation has already been priced in by the market.
BCH price prediction
The daily chart shows that the Bitcoin Cash price has been in a tight range recently. The coin is trading at $643, which is slightly below this month’s high at $803. It is slightly below the 61.8% retracement level at $750 and along the 25-day and 50-day moving averages. It also seems like it has formed a bearish flag pattern and a head and shoulders pattern.
Therefore, there is a likelihood that it will break out lower and retest the key support at $510, which is along the 78.6% retracement level. This view will be invalidated if the price rises above $700.