121 Interactions, 2 Today
Over the last week, the cryptocurrency market has had its fair share of ups and downs. While most altcoins have consistently dropped in value, AVAX, ALGO, ATOM, and XTZ have defied market trends and posted significant increases. Unfortunately, Bitcoin Cash fell into the first category following a disastrous week of trading that resulted in losses of more than 16 percent.
BCH’s demise was documented by the establishment of a down-channel. However, there was some market optimism. A newer high can be predicted, and an upward breakout is possible. BCH was trading at $622.6 at the time of writing, up 2.5 percent from yesterday’s finish.
Bitcoin Cash 4-hour Chart
After bouncing back from the lower trendline, Bitcoin Cash dodged yet another breakout attempt. In the future, a break over $630 would pave the door for a new high at the 38.2 percent Fibonacci level. From there, an upward breakout might result in a rise all the way to $700.
While the pattern should ideally break to the upside, market circumstances at the time of writing did not favour this conclusion. This was primarily due to BCH’s signs indicating poor circumstances for a prolonged rally.
For example, at the time of writing, the 4-hour RSI was firmly within negative zone. When the market is in a decline, the index typically trades below 55. The RSI must rise over 60 to overcome these circumstances. Furthermore, the MACD was trading below its equilibrium level and showed no signs of recovery.
The Awesome Oscillator, on the other hand, depicted an intriguing observation. A bullish twin peak configuration suggested an increase in upward pressure, and while this could be seen in the short term, the next BCH rally will require a lot more work.
The 24-hour trade volume increased by over 10% as BCH surged north inside its pattern. Even if the price was projected to scale above the down-mid-line, channel’s the possibilities of an upward breakout were minimal. The majority of BCH’s indicators were negative, with just the Awesome Oscillator providing some hope.
If profit-taking is observed, the price may return to the 50% Fibonacci level of $593.6.