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The flow of Bitcoin Cash was contained within the boundaries of a falling triangle, and a breakdown was nevertheless anticipated given the bearish market momentum. In a severe sell-off, Ethereum Classic could fall as low as $45.5. Finally, Polkadot sustained its uptrend, but a break over $46.5 seemed impossible.
Bitcoin Cash [BCH]
As Bitcoin Cash exchanged within a descending triangle, the Squeeze Momentum Indicator revealed bearish momentum in the market. The lower trendline at $1,280 marked the conclusion of the bulls’ rally. A break from this trend could result in a drop into the $1,200 support level. The bulls wanted to reclaim $1,430-$1,460 from the sellers in order to break out.
Following overbought conditions, the RSI has slowly deteriorated over the last few days. A price drop below 47-45 will indicate bearish price action.
Ethereum Classic [ETC]
At press time, Ethereum Classic was trading in the pink, but its losses were nowhere near those seen a few days earlier. BCH was up 3% in the last 24 hours, but weekly gains were high at 160 percent. This also indicated that ETC would need to correct itself before resuming its northbound course. If $111 funding is sustained, another increase is likely in the coming days. If the sellers break that amount, pullbacks to $90 and $70.5 were also probable. An drastic sell-off could take the price as low as $45.5 and get it below the 20-SMA (red).
The breadth of the Bollinger Bands signalling high market uncertainty and supported a pullback after the candlesticks sold on the upper band. At the time of publication, the RSI had reached its second high in the overbought region and was heading south.
Bullish energy was observed in the market as Polkadot’s up-channel approached the $42.2 upper limit. It would be exciting to see how this momentum continues as DOT reaches the next ceiling, which is $46.5. If purchasing activity should not slow down prior to a breakout, DOT’s initial goals are $53 and $57.
As DOT reached $42.2, the green bars on the Awesome Oscillator indicated optimistic purchase pressure. If the buying subsides, a pullback between $33 and $35 is possible. The downtrend in OBV demonstrated that the purchasing pressure seen at late-February highs has been steadily declining. This could occur and operate towards a breakout forecast. A positive result is possible if OBV manages to climb above its upper sloping trendline.