The Bitcoin Cash price is struggling today. BCH dropped to an intraday low of $690, which was 42% below last week’s high of $1,217 while its market cap has declined to more than $14 billion. Its ranking of the biggest cryptocurrencies in the world has fallen to 11.
What happened: Basically, the reasons why the Bitcoin Cash price has dropped are similar to what has caused BTC to decline. In summary, there are fears of overvaluation as the currency more than doubled this month. This has seen more investors dump their coins at a significant profit. There are also fears of a lack of catalyst after Coinbase went public last week.
Most importantly, investors are worried about regulations and higher capital gains taxes in the United States. There are also concerns about coordinated efforts by governments to crack down on the currencies. So, is this the end of the strong Bitcoin Cash price rally?
Bitcoin Cash price forecast
On the four-hour chart, we see that the BCH price has struggled substantially lately. The currency has moved below the bearish pennant pattern that is shown in red. The 15-day and 25-day moving averages (MA) have also made a bearish crossover pattern. Further, the Average True Range (ATR) that is a measure of volatility has risen while the Relative Strength Index (RSI) is approaching the oversold level.
Therefore, in my view, the path of least resistance for the BCH is lower and the next target is at $500. However, with interest rates expected to remain low, we should not rule out another recovery of the currency.