Bitcoin Cash (BCH) is the best performer among the top 10 cryptocurrencies by market cap. It displaced Cardano’s native coin, ADA, last week and was the only coin in the top 10 that didn’t record massive losses last week. At press time, BCH is trading at $527 per coin after multiple rejections at key resistance. Bitcoin Cash’s derivatives and on-chain indicators point to growing bearish sentiment, which could see the coin test lower support levels in the near term. Derivatives and on-chain metrics show bullish exhaustion Bitcoin Cash is up by 2.5% in the last 24 hours, making it the best performer among the top 10 cryptocurrencies by market cap. BCH has faced multiple rejections around the $545 resistance level since the start of the month, and this could see it dip lower in the near term. Currently, Bitcoin Cash’s derivatives data shows a bearish outlook. According to CoinGlass , BCH’s long-to-short ratio reads 0.90 on Tuesday. The ratio declining below one indicates a bearish sentiment in the market, with more traders betting on the asset’s price to fall. Furthermore, CryptoQuant’s summary data supports the negative forecast, with BCH’s spot and futures markets showing sell dominance, suggesting a correction in the near term. BCH could retest the $420 support level The BCH/USD 4-hour chart remains bearish and efficient despite the coin adding 2.5% to its value since Monday. BCH’s price has been rejected multiple times at the 61.8% Fibonacci retracement level at $545 since the start of the month. This level coincides with previously broken ascending trendline and the 200-day Exponential Moving Average (EMA) at $544.70, making it a zone of highly likely resistance zone. Currently, Bitcoin Cash’s price action indicates a potential dead-cat bounce, with BCH now trading at $527 per coin. If BCH fails to overcome the $545 resistance level, it could embark on a recovery and retest the first major support level at $478. An extended bearish run would see BCH drop to the February 6 low of $423 over the next few days. The Relative Strength Index (RSI) reads 53, above its neutral level of 50 but pointing downward, suggesting bearish momentum is gaining traction. In addition to that, the Moving Average Convergence Divergence (MACD) lines are diverging, increasing the likelihood of a bullish crossover. If the MACD continues to diverge, BCH risks recording a heavy pullback over the next few hours and days. On the other hand, if Bitcoin Cash closes its daily candle above the 200-day EMA at $544.70, it could extend its rally towards the immediate resistance at $564.00, its 100-day EMA. Currently, the momentum indicators are bearish, aligning with the conditions of the broader cryptocurrency market. The post Bitcoin Cash flashes a bearish signal, eyes the $420 support level appeared first on Invezz
