- BCH price has been in a strong downward trend in the past few weeks.
- The decline accelerated after Bitcoin dropped below the support at $30,000.
- The US dollar index (DXY) has also plunged below $100.
Bitcoin Cash price has retreated in the past few days as investors wait for the next catalyst in the crypto industry. BCH dropped to a low of $233 on Tuesday, the lowest level since June 29th. In all, the coin has dropped by more than 27% from its highest point in June.
Bitcoin price wavers
The most important crypto news of the week is that Bitcoin price dropped below the important support at $30,000 on Monday. This was a notable price action since BTC had failed to move below that support level for weeks.
Most importantly, BTC slipped below the price after a relatively important week. Last week, a New York court delivered a partial victory to Ripple Labs. The court ruled that Ripple Labs and its executives violated laws in 2013. It also ruled that XRP was not a financial security.
The other important event that happened last week was that the US published weak consumer and producer inflation data. Data showed that the headline consumer price index dropped to 3% while core CPI fell to 4.8%.
Read more: How to buy Bitcoin Cash.
These numbers came a few days after the US published weak non-farm payrolls (NFP) data. The data revealed that the economy added 209k jobs in June, signaling that the labor market was softening.
Other data published on Tuesday showed that the economy was softening. Retail sales and core sales rose by 0.2% on a MoM basis and by 1.49% on an annual basis. These numbers missed the consensus estimates.
America’s industrial and manufacturing production also grew at a slower pace than expected. Therefore, the US dollar index (DXY) has crashed to a multi-month low of $99 as investors bet that the Fed will pause its hikes soon.
Bitcoin Cash price is therefore falling because Bitcoin has moved below the support at $30,000. Historically, the two have had a close correlation.
Bitcoin Cash price prediction
The 4H chart shows that the BCH crypto price has been in a strong bearish trend in the past few days. It has managed to move below the key support at $247.91, the lowest point on July 5th. The 25-period and 50-period exponential moving averages (EMA).
Bitcoin Cash is also trading at the 38.2% Fibonacci Retracement level while the Relative Strength Index (RSI) has been in a downward trend. The MACD has moved below the neutral point.
Therefore, the BCH price will likely continue falling as sellers target the next support level at $200. A move above the resistance level at $247 will invalidate the bearish view.
