Bitcoin Cash [BCH] Price Analysis: Bears sense opening as market correction begins

click here to see original post

A green wave swept over the cryptocurrency market as $10 billion was added in less than 24 hours. Leading the charge was EOS and Bitcoin Cash [BCH], with both coins seeing massive double-digit price increases.

Following the rapid rise, BCH has now dipped, posting a 2.65 percent decline against the US dollar, the biggest decrease in the top 10. The coin is now trading at $142.46, while the market cap of the coin stands at $2.51 billion, over $400 million behind Litecoin [LTC].

In terms of exchange dominance, LBank takes the top two spots in BCH trading volume, accounting for $68.86 million, or 12.76 percent, and $32.68 million, or 6.06 percent via the trading pairs BCH/BTC and BCH/USDT respectively. Taking the third spot is Huobi Global, holding $29.85 million or 5.53 percent in the trading pair, BCH/USDT.

1-hour

Source: TradingView

After several days of stabilization, the coin saw a massive uptrend which stretched from $120.06 to $143.65, following which the coin began to stabilize and has now, declined.

Bitcoin Cash finds immediate resistance at $148.74. The immediate support level, placed at $139.57, formed after the price increase, has been broken and has since shifted down to $137.61.

The Parabolic SAR shows that the coin is now trading with bearish momentum as the dotted lines are aligned above the coin’s trend line.

The Fisher Transform line shows that the coin is bearish, as indicated by the Trigger Line’s crossing over the Fisher Line.

The Chaikin Money Flow tool, however, indicates that the money flowing into the coin market is above 0. However, this is likely to dip below.

1-day

Source: Trading View

In the one-day chart, a massive downtrend is witnessed between $624.43 to $82.36, a reminder of the November 2018 hard fork. Following the brief bull run in mid-December, the coin has seen yet another downtrend stretching from $197.02 to $126.55.

Bitcoin Cash finds long-term support at $108.67, which the coin is now well above. The long-term resistance stands at $142.26, which the coin is trading close to, but looks unlikely to break.

The Bollinger Bands are expanding, suggesting that the coin will make way for some degree of price volatility and fluctuation. Further, the Moving Average line shows that the coin is bullish.

The MACD line shows that the coin is vying for entry into the bullish zone since early January, but with no respite.

The Relative Strength Index shows that investor interest has since mildly dipped to 63.79, still close to the ‘overbought’ zone.

Conclusion:

Bitcoin Cash saw a massive price increase on 19 February, even more so than the rest of the market. But, it has failed to sustain the bullish wave, seeing a significant price decline the following day. The short-term indicators point to a bearish market for the coin with the exception of the Chaikin Money Flow which suggests a positive money inflow into BCH. In the long term, the volatility of the coin has increased, as indicated by the Bollinger Band, but the suppression of the bulls continues.


Follow us on Telegram | Twitter | Facebook


Don’t Miss

Elon Musk: Cryptocurrency is the future; paper money will soon fade away

Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.

Share !