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Bitcoin Cash price has entered a bear market after falling 22%.
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The coin tends to fall further in the short term as it moves out of the overbought zone.
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Some investors think now is the right time for dollar-cost averaging (DCA)
bitcoin cash Prices moved into a bear market as investors started taking profits after June’s excellent performance. On Wednesday, the coin retreated to a low of $250, about 22% below its June high.
BCH Enters Bear Market
Bitcoin Cash had one of its best months in June as investors moved to proof-of-work cryptocurrencies after the SEC lawsuits against Binance and Coinbase. Investors believe that coins like BCH, Verge and Litecoin will benefit if the SEC decides to move to battle crypto tokens like Solana and Cardano.
Bitcoin Cash price has fallen more than 20% from its June high, entering a bear market. The drop was largely due to profit taking, as BTC was up more than 250% between its June lows and highs.
Historically, investors have tended to let go of assets after they have surged for a period of time. When it falls, the so-called fear of missing out (FOMO) situation is reversed and buyers during the uptrend begin to pull out.
BCH price also falls Bitcoin The price has struggled to break above the bullish flag pattern that is forming. BTC is hovering at $30,300 and could break below $30,000 in the near future.
In addition, BCH fell as US stocks fell after the Independence Day holiday. The Dow Jones index is down 50 points and the Nasdaq 100 index is down about 20 points.
Bitcoin Cash price prediction
On the daily chart, we can see that the BCH price has retreated over the past few days. This retreat started after the coin moved into the zone of extreme greed. On the coin he has formed a pattern of three black crows. This happens when 3 red candles follow each other.
Bitcoin Cash is still well above the 50- and 100-day MAs, but the Relative Strength Index (RSI) is below the overbought levels. Therefore, I suspect that the price of Bitcoin Cash could fall further in the short term before it finally recovers.
This fall is likely to drag the price to the next critical support, the 25-day MA of $210. So dollar cost averaging, where traders buy when the coin falls, can be a good idea as it will eventually bounce back.
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