Bitcoin Cash Price Analysis: BCH/USD Down to Make-or-Break Level

Source: ETHNews, originally published on .

https://www.livebitcoinnews.com/bitcoin-cash-price-analysis-bch-usd-down-to-make-or-break-level/.

Bitcoin Cash tumbled sharply below its short-term descending triangle to reach the bottom of its longer-term ascending channel that’s just forming. This could be a crucial level for bulls to sustain an earlier long-term breakout from a descending trend line, confirming if a reversal is underway.


The 100 SMA is above the longer-term 200 SMA on this time frame, indicating that the path of least resistance is to the upside. In other words, support is more likely to hold than to break. However, the price is already below both moving averages’ dynamic inflection points so there has been a pickup in selling pressure.

Stochastic appears to be bottoming out as it hovers near oversold territory, indicating that bears may be exhausted and willing to let buyers take over. Turning higher could bring bullish pressure back in and lead to a bounce back to the mid-channel area of interest, which lines up with the broken triangle bottom. Stronger buying momentum could take Bitcoin Cash back to the channel top closer to $600.

RSI is also dipping in the oversold territory but still seems to be pointing down to signal that sellers aren’t done yet. Turning higher could signal that buyers are regaining control.

BCH/USD Chart - TradingView

Risk aversion returned to global financial markets recently, dragging higher-yielding riskier assets like stocks, commodities, and cryptocurrencies sharply down. Unfortunately for Bitcoin Cash and its peers, cryptocurrencies have been on slightly shakier footing due to the IMF warning on cybersecurity and the call to step up regulation for cryptocurrencies.

Note, however, that Bitcoin Cash still holds some cards in its favor as Roger Ver is said to be planning on setting up a “high liquid exchange with BCH as base”. Recall that this altcoin also has support from the Bitmain IPO as the company holds a huge chunk of Bitcoin Cash in its vaults as well.


Images courtesy of TradingView

The post Bitcoin Cash Price Analysis: BCH/USD Down to Make-or-Break Level appeared first on Live Bitcoin News.

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