- Bitcoin Cash is showing signs of bearish weaknesses on the daily chart
- Bulls shift attention to defending the $640 support (78.6 percent FIB retracement leel)
- Bollinger Band moving average is downsloping and exerting pressure on the BCH price action
Bitcoin Cash is showing signs of bearish weaknesses on the daily chart after the tight range movement shifted its direction downwards to suggest chances of a breakdown. After the Bitcoin hardfork attained a daily high of $651 towards the close of yesterday’s session, the bears came in and pulled the price towards the $625 region. The drop in BCH/USD price can be attributed to the increasing olume of profit-taking traders. This situation has resulted in failure to break through the $680 region and attain the upper target of $700.
Our Bitcoin Cash price analysis indicates the bulls could be exhausted and might fail to steer the price towards another rally. The MACD shows momentum has drastically dropped in the last 24-hours.
This has made the bulls shift attention to defending the $640 support leel, which also serves as the 78.6 percent FIB retracement leel. The In/Out of the Money Around Price (IOMAP) indicates bearish weaknesses below this support, suggesting that a break below $640 would attract heavy losses and lead to close near $600.
The next main support below $600 is the $548 region. However, this one is strong support, and the bulls would sustain the price effortlessly above it. Meanwhile, the upside indicates intense selling pressure between the press time price of $642 and $657. The bulls are optimistic about hitting $700 if at all they can breach resistance between this area.
Bitcoin Cash price movement in the last 24 hours: Bulls find resistance between $642 – $657
The 24-hour Bitcoin Cash price analysis candlesticks are struggling to breach a bearish divergence.TD’s sequential indicator also shows a sell signal on the 9-hour chart, which suggests an imminent downtrend. A potential upside was eident 5-days ago at the edge of the $690 price zone. However, the bears were quick to neutralize, and the effect could extend to the $619 region as shown on the 5-day BCH/USD chart below:
BCH/USD 4-hour chart: Bulls clearing sellers to regain control of the market
The Bitcoin Cash market has increasingly turned from bullish to unclarity in the past 1-week with traders struggling to identify buy signals. The Bollinger Band moving average is downsloping and exerting pressure on the BCH price action. On the other hand, the hourly MACD continues to draw a consequent bar of red and green bars. Therefore, painting confusing sell and buy signals simultaneously. While this could be translated as an imminent trend reversal, the $642 – $657 resistance still poses a danger zone for short-term swing traders.
Meanwhile, we should note the developing ascending trendline on the 4-hour chart, which could prepare the coin for an upward breakout. This could raise the odds of a rally granted that 11 percent of all ascending triangle patterns succeed to higher lows.
Bitcoin Cash price analysis conclusion: Will a breakout materialize?
Bitcoin Cash (BCH) aims to move out of a complex pattern that’s been holding the bulls hostage for the 2nd consecutive day. Buyers need to keep pushing and hit the $650 major support; at least they can consolidate enough strength to navigate the remaining resistance line. Failure to materialize such price action will create a downtrend below $640 and probably drop to the $619 minor support.