The slide in Bitcoin prices on Tuesday to 33K puts additional pressure on its analogues in the crypto market. Bitcoin cash is also feeling the heat, and with the price on the BCH/USD pair heading towards the critical 459.72, bearish Bitcoin Cash price predictions are already starting to spring up.
Bitcoin Cash has fallen 70% from its year-to-date highs, and further supporting bearish Bitcoin Cash price predictions is the formation of the death cross on the daily chart. US inflation data showed that consumer inflation in the US had risen yet again, which raises the prospects for early tapering by the Fed (or at least discussions in this regard).
The greenback has gained broadly across the board, and we may see sellers shedding off their crypto holdings for the greenback’s safe-haven status.
The BCH/USD pair is down 1.63% as of writing.
Technical Levels to Watch
The price has to break below the support at 459.72 to confirm the bearish Bitcoin Cash price predictions. This move opens the door for sellers to aim for 371.91 (27 January low). A further decline targets 300.00 (4 December 2020 high), with 275.50 and 200.68 forming additional downside targets.
On the other hand, a recovery in price only follows a bounce from 459.72 and a subsequent break of 539.55. This move brings 601.98 (15 February/21 May lows) into the picture, while 645.89 and 728.43 also remain potential upside targets. The current sentiment tilts towards the bearish outlook, and only the bounce and break of 539.55 changes it.