The Bitcoin Cash price is paring some of the losses it made during the American and Asian sessions. BCH is trading at $970, which is slightly above $945, where it declined to a few hours ago. It is about 40% above the lowest level on April 23. Bitcoin Cash has a total value of more than $18 billion.
What happened: Bitcoin Cash, like other altcoins, has a close correlation with Bitcoin. Since BCH trades at less than $1,000, many retail traders prefer trading it than BTC, which trades at more than $50,000.
Therefore, in most periods, the BCH price tends to decline when BTC falls. And in the overnight session, Bitcoin declined as more investors rotated from BTC to Ethereum. Ether has surged to an all-time high of more than $3,200.
So, what next for BCH price? In my view, this trend in May will depend on the overall BTC movement. It will also depend on the overall economic data from the United States and the Fed. If the US continues firing on all cylinders, the Fed could change tune on monetary policy. If it signals a change of tone, we could see some aggressive profit-taking and vice versa.
Bitcoin Cash price prediction
On the four-hour chart, we see that the BCH price has formed a double-top pattern. In technical analysis, this pattern is usually a bearish sign. Its neckline is at $952. Also, the price is between the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the ascending trendline.
Therefore, in my view, we will likely see more BCH weakness in the near term. If this happens, we can’t rule out another drop to $860. However, a move above the double-top level at $1,035 will invalidate this trend.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.