Bitcoin Cash (BCH) has been stuck below $400 for over a week. Bulls and bears remain locked in a tight battle, preventing a decisive move in either direction. The ongoing tug-of-war has kept BCH in a consolidation phase, with no clear breakout in sight.
Bulls and Bears in a Standoff
According to IntoTheBlock, the Bulls and Bears Indicator shows an even split between buying and selling pressure. Bulls are addresses accumulating at least 1% of the total trading volume, while bears are those selling an equal amount.
This balance has made it difficult for BCH to gain upward momentum. If bulls manage to overpower bears, a rally could push the price above $400. However, if selling pressure increases, BCH might drop below its current support levels.
Technical Indicators Signal Consolidation
The 20 EMA (blue) and 50 EMA (yellow) on the 4-hour chart rest between $333.42 and $337.65. This positioning suggests indecision in BCH’s trend.
If BCH remains in this range, it may continue trading sideways. A decisive break above these levels could pave the way for an upward movement. However, a drop below these points may trigger further declines.
Momentum Indicators Show Uncertainty
The Elder Force Index (EFI), which measures the strength of bulls versus bears, is hovering near neutral. This suggests neither side has full control over the price direction.
The Awesome Oscillator (AO) has flashed green histogram bars but remains near the negative region. If this trend continues, BCH could trade between $310 and $350 in the short term.
What’s Next for BCH?
If demand for BCH increases, a rally toward $500 could be possible. However, if bears take control, the price might drop as low as $271.77.
For now, Bitcoin Cash remains range-bound. Traders should watch for signs of a breakout before making any major moves.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
