Bitcoin Cash (BCH) is bracing for a potential drop after a brief bounce off a trendline failed to generate bullish momentum. Instead, the cryptocurrency is now facing a bearish extension with an eye on the key support level at $288. With sellers regaining control, the market is on high alert, wondering if this renewed downward pressure will drive BCH even lower, or if a bounce is still possible.

This article discusses the recent bearish expansion of Bitcoin Cash after its failure break above the trend line. It will analyze key technical indicators, examine market sentiment and assess potential for a further downside move towards the critical support level of $288. Additionally, the article will consider whether BCH can find stability amidst the growing selling pressure or if a deeper decline is on the horizon.

Bearish Extension In Play: Bitcoin Cash Path To $288

On the 4-hour chart, BCH shows a clear downward trend momentum as it approaches the 100-day elementary moving average (SMA). Failure to break through this critical trendline indicates that pressure is intensifying and sellers are increasingly taking control. This renewed downside momentum increases the likelihood of further declines, potentially driving price toward the $288 support level.

Additionally, the Relative Strength Index (RSI) on the 4-hour chart recently dipped towards the 50% mark. This decline suggests weakening bullish momentum and indicates that the market may be shifting towards negative sentiment, reinforcing the potential for further declines in BCH price.

On the 1-day chart, BCH is showing a bearish trajectory towards the $288 support level, after rejecting the trendline. The bearish outlook is underlined by the formation of two consecutive bearish candles. Moreover, the fact that the price remains below the 100-day SMA reinforces the prevailing negative market public sentiment and indicates that downward pressure may continue, which could cause prices to fall.

Finally, on the 1-day chart, the RSI signal line that recently rose to 54% is now retesting the 50% threshold, suggesting that bullish momentum may be fading and the market may be transitioning back into a bearish phase. If the RSI falls below 50%, it would confirm a change in sentiment towards selling pressure, potentially supporting a further downtrend in BCH price.

Modern BCH Challenge: Sailing the Bear Path

Bitcoin Cash (BCH) is facing noticeable downward pressure as it heads towards the $288 support level. If the downward pressure continues and the price breaks through this support, crypto The asset could decline further, potentially falling to the $211 support level and exploring other key support zones beyond this level.

Conversely, if BCH succeeds to hold above the critical support level, could signal a potential bounce and push towards the $367 resistance. A break above this level could see the price rally, potentially testing the $457 resistance and extending into other significant resistance areas.

At the time of writing, Bitcoin Cash was trading at around $329, down 2.71%. With a market cap of over $6.5 billion and trading volume of over $158 million, BCH saw a 2.78% drop in market cap and a 23.14% drop in trading volume over the past 24 hours.

Featured image from Unsplash, chart from Tradingview.com