Bitcoin Cash (BCH) is currently trading around $623, down 7% on the day. This drop in BCH price is part of a broader market correction, as most altcoins are down 5-15% in the lead-up to the upcoming Bitcoin halving event.
One of the most popular traders in the crypto space, AlanSantana, posted an analysis on TradingView highlighting the bearish signals for BCH. As he explains, “This is a friendly, and hopefully timely, reminder to all my readers, followers and supporters — Bitcoin Cash is about to crash. Well, not crash but we are going to see a drop and this is likely headed toward MA200.”
Looking at the daily chart, AlanSantana points to several technical indicators signaling an impending pullback for BCH. “We have a shooting star, or close to one, on the 5th of April. We have multiple red sessions and today’s candle is ultra-bearish,” he notes.
The trader believes the main target for BCH in the mid-term is the 200-day moving average (MA200), which is currently sitting around $295. However, he cautions that “it can take months to hit the support target, months of accumulation, months of recovery and then some more before the same high prices before the correction show up again. It can take anywhere between 2-3 weeks to 4-8 months… It varies depending on the pair and market.”
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Show more +AlanSantana emphasizes that this is a new market phase with “lots of variations when it comes to the charts and price action.” He explains that “the reason for this is the market success, as it grows, many projects detach from the herd and start to produce their own cycles. New categories are created as well as new trading vehicles and this changes the whole dynamic. This is good, colorful and varied is good.”
In conclusion, the BCH price is currently facing a correction as part of the broader altcoin market pullback. Prominent trader AlanSantana has warned his followers to “Prepare for the drop” in BCH, with the MA200 around $295 being the likely medium-term target. Investors should exercise caution and closely monitor the situation as the market navigates this period of increased volatility.
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