Bitcoin Cash (BCH) price forecast as BTC dips under $87k

• Bitcoin Cash price has dipped below $550 as Bitcoin sees a sharp decline to under $87,000.
• The altcoin’s value could shrink to under $500 if BTC plummets further.
• Macroeconomic headwinds continue to hinder bulls.

Bitcoin Cash (BCH) traded near the pivotal $560 support level amid broader market uncertainties, with Bitcoin’s dip to under $87,000 further spooking crypto investors.

As the cryptocurrency landscape keeps fluctuating, it appears BCH bulls could be in more trouble.

The altcoin’s price stood at $546 as of writing, down 4% in the past 24 hours.

Bitcoin Cash dips 4% as Bitcoin slips under $87,000

Bitcoin Cash price was down $4% as a turbulent December continued to torment bulls.

Amid a wider market weakness, the BCH price dipped below $550 to signal fresh turmoil.

That’s because after surging to highs of $600, the altcoin has encountered increased profit-taking. Pressure has mounted amid Bitcoin’s struggles.

On December 14, the Bitcoin Cash price dipped to $556. Bears went on to test the 550 mark, and prices have since dipped to near $540.

The downturn mirrored Bitcoin’s sharp dip from above $90,000 in early trading on Monday to around $86,700 at the time of writing.

Ethereum price also plunged to the $3,000 support level, with BitMine announcing a fresh ETH buy.

Why are cryptocurrencies down today?

Market participants attribute the downturn to macroeconomic headwinds, including lingering inflation concerns.

Last week, the bellwether digital asset failed to rally as the US Federal Reserve announced a rate cut.

Now, BTC’s sharp decline comes as the Bank of Japan is set for a rate hike.

Historically, Bitcoin price has tanked on BOJ rate hikes, and analysts see the upcoming move as bearish for crypto.

This week is also lined with key economic data releases.

Overall risk-off sentiment saw over $50 million in Bitcoin longs liquidated.

That happened within an hour as BTC fell 3% following the Wall Street open. Crypto analyst Lark Davis shared this via X.

BCH price technical outlook

Technical indicators paint a largely short-term bearish picture.

On the daily chart, the Relative Strength Index (RSI) sits at 47 after flipping downward from 56.

This downward flip in RSI, coupled with increasing bearish momentum, hints at further price declines.

Meanwhile, the Moving Average Convergence Divergence also shows a bearish crossover, indicating a potential short-term price pressure.

BCH could thus drop to $500, and if these indicators align with a broader market sell-off, as is the case today, it could allow sellers to push for $450 and $380 next.

However, an uptick with RSI gaining steam and MACD seeing an inflexion could allow for a retest of $600.