Share this article
Back at $1,500: Bitcoin Cash Could See Further Dip
Technical analysis suggests that bitcoin cash could see a further decline ahead, but that bull scenarios are also in play.
Updated Sep 13, 2021, 7:29 a.m. Published Jan 26, 2018, 3:35 p.m.
is trading on the back foot today, with technical analysis suggesting the market risks a bearish breakdown over the weekend.
At press time, the cryptocurrency has depreciated by 7 percent in the last 24 hours, according to data source OnChinaFX. On Bitfinex, the largest market for BCH/USD trading, bitcoin cash fell to $1,479 today; its lowest level against the dollar since Jan. 17. As of writing, it is trading at $1,599.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The development follows a sharp recovery from the Jan. 17 low of $1,343, which witnessed a follow-through buying in the subsequent days. However, the move ran out of steam at a high of $2,110 on Jan. 20 and BCH turned lower again, thus creating a lower high pattern (bearish pattern) on the charts.
That said, the 7 percent drop seen today is largely in line with the weakness in other cryptocurrencies.
For instance, BCH's rival bitcoin has dropped by 5 percent in the last 24 hours. Further, Ripple's XRP token and Stellar's XLM token are down 8 percent each, while ethereum's ETH cryptocurrency is down 2 percent.
Bitcoin cash chart
The above chart (prices as per Bitfinex) shows:
- BCH is creating head and shoulders bearish reversal pattern. A close (as per UTC) below the neckline would confirm a long-term bullish-to-bearish trend change.
- 50-day MA has shed bullish bias (topped out).
- Falling channel marked by downward sloping trendlines representing lower highs and lower lows.
- The relative strength index also favors the bears.
View
Confirmation of head and shoulders breakdown (close below $1,398 - neckline support) would open doors for a drop to $1,100 (Nov. 29 low) and possibly to falling channel support seen sloping lower to $1,050 over the next few days. A violation there would expose support at $851.12 (Nov. 17 low).
Meanwhile, the 50-day MA of $2,195 could be put to test if the bulls defend the neckline support and prices quickly move above $1,806 (Jan. 22 high).
On a larger scheme of things, only a daily close (as per UTC) above $2,400 would revive the bull run. Such a move would confirm upside break of the falling channel pattern and could yield $2,900-$3,000.
Hot air balloon in water image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Binance opens up ways for users to generate income using ETH options
Binance has opened up ether options to all users, allowing them to earn passive income.
What to know:
- Binance has opened up ether options to all users, allowing them to earn passive income, expanding a strategy previously limited to professional traders.
- The exchange's move responds to growing demand for advanced derivative tools from both retail and institutional investors.
- Binance has upgraded its options platform to offer faster execution and greater flexibility, aiming to dominate the competitive crypto options market.
Top Stories
