- Bitcoin cash token is trading on a bearish note with making the falling channel pattern
- The ratio of BCH/BTC remains flat at 0.01594 BTC with intraday gains of +0.78%; whereas, the pair of BCH/ETH is also trading flat CMP at 0.2414 ETH
Bitcoin cash is trading on a bearish note and making a falling channel pattern over the monthly chart. Bitcoin cash token (BCH) has been steadily declining since its recent peak of $1635 in mid-May 2017. It eventually fell to around $460 by month’s end. The cryptocurrency has fallen below that level as traders increasingly worry about regulatory crackdowns from countries such as India and China, which have led to a sell-off of bitcoin and other cryptocurrencies over the past month.
This section will detail the bearish chart pattern and falling channel pattern that Bitcoin cash BCH has been under recently, which can help traders identify possible trading strategies for this cryptocurrency in general. Either side breakout will give a strong momentum in upcoming trading sessions. However, volume is also decreasing and falls below the average line. While for the positive or bullish momentum, the volume needs to improve over the monthly chart.
Bitcoin cash over the weekly chart is trading under the Bear’s grip and falls below vital moving averages like 20, 50, 100, and 200-DMA. Moreover, the coin continuously makes the sequence of lower bottom and lower top, which indicates its bearish trend in a shorter-term time horizon with low volume action. Meanwhile, the closing of day candles above 200 and 100-DMA will give confidence to Bulls, and then only we can expect a good price recovery.
Relative Strength Index (BEARISH): Bitcoin cash token RSI is presently projecting no sign of recovery, gradual trading near the oversold region over the weekly chart. At the same time, trading at 38 levels.
Moving Average Convergence Divergence (MIXED): Currently projecting a mixed trend over the weekly chart. The MACD shows the buyer’s signal line (green) and the seller’s line (red) are overlapping each other with no clear momentum.
Support levels: $540 and $460
Resistance levels: $640 and $760.