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In the short term, the blockchain industry has been unpredictable. Bitcoin Cash [BCH] is a perfect example, with the famous Bitcoin fork seeing a sharp rise in valuation accompanied by a wave of corrections in the hours leading up to press time.
BCH was worth $538.73 at the time of publication, with a market capitalisation of $10.18 billion. Bitcoin Cash had fallen to 14th place on CoinMarketCap, owing in part to the success of its peers.
Bitcoin Cash [BCH] hourly chart
The Bitcoin Cash price recently touched a peak of $554.91 before retracing. In reality, BCH’s valuation has fallen below the $544 support mark, with the alt trading around $540 at the time of writing. The next support level was discovered to be $533, with the market’s evolving selling pressure expected to bring the price to this level quickly.
With market uncertainty rising, BCH was seen heading into the overbought sector. The Relative Strength Index (RSI) was reflecting this rising buyer saturation in the industry, with a reading of 61 pointing north.
However, amid some of the market’s sellers attempting to make a buck, a degree of bullish traction in the market may be seen. Despite a bearish crossing, the MACD was too close to the Signal line to be significant. In reality, it was possible that a strong surge would enter the market before the selling pressure took hold.
Crucial levels to watch out for
Take Profit: $533.69
Risk to Reward: 3.17
At the time of publishing, the Bitcoin Cash market was retracing its previous price increase. It was supported at $533.44, but selling pressure was building and could drive the price down to this amount, resulting in gains for short sellers.