Bitcoin Cash (BCH) Stuck Below $400 as Bulls and Bears Battle It Out

Key Takeaways

• Bitcoin Cash’s price action faces uncertainty as bulls and bears remain evenly matched.
• The position of the 20 and 50 EMAs on the 4-hour chart indicates extended consolidation.
• By the look of things, BCH’s price is unlikely to trade above $400 in the short term.

For the past seven days, Bitcoin Cash’s (BCH) price has been wobbling around the same region. This has left the cryptocurrency trading under $400, a level it last reached on Feb. 2.

This inability to break out happened as bears resisted giving bulls a clear path to send the price higher. With bullish momentum failing to take control, Here’s what on-chain data and technical indicators reveal about the possible BCH’s next move.

BCH Yet to Find Clear Direction

According to IntoTheBlock, Bitcoin Cash’s Bulls and Bears indicator reveals an even split between buyers and sellers over the past week.

Bulls are addresses that accumulated at least 1% of the total trading volume. On the other hand, bears are addresses that sold an equal amount.

Buying pressure is dominant when the number of bulls increases, and the price is likely to increase. However, if bears have the upper hand, it indicates rising selling pressure.

Therefore, this balance has kept BCH’s price below $400, with no clear breakout in sight.

But if buying pressure gains momentum, a rally could follow. However, if bears take control, BCH might face another downturn.

The Exponential Moving Average (EMA) on the 4-hour chart also seems to align with this bias. Typically, the EMA is a technical indicator that measures trend direction.

When the indicator is above the price, the trend is bearish. But when it is below it, the trend is bullish. For Bitcoin Cash’s price, the 20 EMA (blue) and 50 EMA (yellow) rest around the same region between $333.42 and $337.65.

This position indicates indecision in BCH’s direction. If this remains the same, Bitcoin Cash’s price might continue consolidating around these points while eluding a run toward $400.

BCH Price to Remain Range-Bound

The daily chart’s Elder Force Index (EFI) also agrees with the price action displayed in the 4-hour timeframe. The EFI measures the strength of bulls compared to bears.

When the reading is positive, bulls are in control. Conversely, bears have the upper hand when the reading turns downwards and is negative. As seen below, the EFI reading is near the neutral region, confirming that the BCH price direction could end up in consolidation.

The Awesome Oscillator (AO), which measures momentum, has flashed green histogram bars but wobbles near the negative region. If this remains the same, Bitcoin Cash’s price might keep trading between $310 and $350.

However, if the cryptocurrency sees a notable increase in demand, this might not be the case. Should that happen, BCH could rally toward $500.

Alternatively, if selling pressure intensifies and bears take control, the price could increase to $271.77.