Bitcoin Cash Price Analysis: BCH flashes sell signals in 4-hour and 12-hour charts


  • The parabolic SAR has reversed from bullish to bearish in the 4-hour chart.
  • The IOMAP shows that the price is currently sitting on top of a healthy support wall.

The BCH 4-hour chart flashed a sell sign in the TD sequential indicator. After flashing the signal, the price has been trending horizontally over the next six sessions.

bchusd 4-hour chart

BCH needs to break below the upward trending line and the SMA 200 ($224.25) to validate that sell signal and strengthen the downtrend. The parabolic SAR and MACD are both bearish, which shows that the price should ideally break below this period of consolidation. However, why is the price consolidating in the first place instead of going down? For that, we need to look at the IOMAP.

BCH IOMAP 

fxsoriginal

IntoTheBlock’s “In/Out of the Money Around Price” model (IOMAP) shows us that BTC is presently sitting on top of a strong support wall at $223. At this level, around 106,810 addresses had previously purchased 816,280 BCH. As per the IOMAP, this support wall absorbs a lot of the selling pressure, which is preventing the downward trend, for now. However, if the sellers do break below this level, they may have enough momentum to take the price below $200.

On the upside, we have a moderate-to-strong resistance level, $233. In this level, 96,400 addresses had bought 594,000 BCH. 

BCH 12-hour chart

bchusd 12-hour chart

The 12-hour chart helps us gain a better understanding of the potential price action. The latest candlestick has also flashed a sell signal in the TD sequential indicator. To solidify this downtrend, the price must break below the SMA 50 ($224) to have a bearish breakout from the flag formation. Following this, the price will probably drop down to the $214.45 support level. The relative strength index (RSI) is trending around the neutral zone, which shows that the sellers have plenty of room to move before the asset becomes undervalued. 

BCH Key levels

BCH/USD

Overview
Today last price 227.7138
Today Daily Change 1.9304
Today Daily Change % 0.85
Today daily open 225.7834
 
Trends
Daily SMA20 224.9054
Daily SMA50 254.8247
Daily SMA100 252.1534
Daily SMA200 242.794
 
Levels
Previous Daily High 234.6996
Previous Daily Low 223.8736
Previous Weekly High 233.4679
Previous Weekly Low 203.1995
Previous Monthly High 338.2532
Previous Monthly Low 244.1306
Daily Fibonacci 38.2% 228.0091
Daily Fibonacci 61.8% 230.564
Daily Pivot Point S1 221.5381
Daily Pivot Point S2 217.2929
Daily Pivot Point S3 210.7121
Daily Pivot Point R1 232.3641
Daily Pivot Point R2 238.9449
Daily Pivot Point R3 243.1901

 


 

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