- Bitcoin Cash corrects from a failed attempt to break above $400 resistance zone.
- The double-top pattern jeopardizes Bitcoin Cash’s chances of sticking above $370.
Bitcoin Cash has slowed down the momentum emanating from the recent recovery from the regions underneath $300. The bulls intended to beat the resistance at $400 and form new 2020 highs above $404. However, the bears had a different plan, especially with their congestion between $390 and $400.
The Asian session on Thursday has been marred by increased selling activity. BCH has lost 1% of its value on the day after it opened the session at $379. BCH/USD is teetering at $374 but interestingly the cryptocurrencies live rates table shows that Bitcoin Cash is facing a bullish momentum amid high volatility levels. This means that a reversal is in the offing in the near term.
Bitcoin Cash technical picture
Looking at the 4-hour chart, Bitcoin is still battling the impact of formed double-top pattern. The impact of the pattern could have overarching effects especially if the short term support at $370 fails to hold. The best card the bulls can play is to defend $370 support to ensure that they do not lose sight of $400.
The RSI is retreating from the overbought region and could encourage more entries by the bears, which is likely to push BCH towards $360 support. The MCAD is horizontal at 13.66 level but it is inclined southwards. An impending bearish cross could be the signal of a tighter grip by the bears.
BCH/USD 4-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.