• Bitcoin Cash has formed a sell signal on its MACD indicator, which could cause a price decline to $365.
• Despite the bearish trends, traders on Binance are betting on further price increases.

Bitcoin Cash [BCH] had gained slightly by 0.1% to trade at $430, at press time. Despite this gain, the altcoin was down by 6.5% in the last seven days, reflecting a bearish trend across the broader cryptocurrency market.

On the charts, bears remained in control of BCH’s price action, as shown by the Moving Average Convergence Divergence (MACD) indicator. The histogram bars and the MACD line were negative, indicating bearish momentum.

The crossover of the MACD line below the signal line has also formed another sell signal. Historically, this sell signal has triggered a steep decline for BCH.

A strong support level for Bitcoin Cash lies at the lower Bollinger band at $417. If the altcoin breaches this support, it could cause a decline to the 1.618 Fibonacci level at $365. 

Key resistance level to watch 

The In/Out of the Money Around Price (IOMAP) indicator shows a crucial resistance level for BCH between $432 and $445.

Over 429,000 addresses purchased the token at these price levels, and if they choose to minimize their losses, it could increase sell-side pressure.