Bitcoin Cash price has moved into a bear market as investors take profits after its impressive performance in June. The coin dropped to a low of $250, a 22% decrease from its highest level in June.
This decline is mostly due to profit-taking, as Bitcoin rose by more than 250% from its lowest to highest point in June. The move to a bear market is also linked to Bitcoin’s struggle to move above the upper side of the bullish flag pattern that has been forming.
Furthermore, American stocks fell after the Independence Day holiday, with the Dow Jones index dropping by 50 points and the Nasdaq 100 falling by about 20 points.
On the daily chart, we can see that the BCH price has retreated in the past few days due to the coin moving to the extreme greed zone. The coin has now formed the three black crows pattern, which happens when three red candles follow each other.
Bitcoin Cash is still much higher than the 50-day and 100-day moving averages, while the Relative Strength Index (RSI) has gone below the overbought level. Therefore, it is likely that Bitcoin Cash price will have some more downside in the short term before it eventually recovers.
This pullback could see BCH drop to the next key support at $210, which is the 25-day moving average. Thus, dollar cost averaging, which involves buying the coin as it drops, could be a good strategy.
To buy Bitcoin Cash, investors can use eToro and CEX.IO. However, it is important to remember that cryptoasset investing is unregulated in some EU countries and therefore, there is no consumer protection. Therefore, investors should be aware that their capital is at risk.
