Bitcoin Cash price analysis: BCH/USD consolidates in a flag formation as market volatility increases
|- The Elliot Oscillator shows 13 straight bullish sessions.
- The Relative Strength Index is trending around 60.50, next to the overbought zone.
BCH/USD has gone down from $283.55 to $280.50 in the early hours of Friday as the bears remain in control of the market. The price had crept above the 20-day Bollinger band, indicating that it was overvalued. Since then, BCH/USD trended horizontally to re-enter the band. The hourly breakdown of Thursday and Friday shows us that the price dropped to $277.85 from $290.45 in five hours before it immediately recovered to $287.40. Since then, the price gradually corrected itself to $280.50.
BCH/USD daily chart
The price is consolidating in a flag formation and is floating above the 20-day Simple Moving Average (SMA 20) and SMA 50 curves. The 20-day Bollinger Band has widened, indicating increasing market volatility. The Moving Average Convergence/Divergence (MACD) indicates sustained bullish momentum, while the Elliott Oscillator has had 13 straight green sessions. The Relative Strength Index is trending around 60.50, next to the overbought zone.
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