Bitcoin Cash price analysis: BCH/USD on its way to forming big head and shoulders pattern, neckline seen just below $800
- Bitcoin Cash seen down 5% on Monday, resuming big head and shoulders formation.
- Key level to watch in coming days potentially would be $800, which acts as the neckline for the mentioned pattern.
The Bitcoin Cash price is trading down over 5% on Monday, resuming the downside pressure seen over the past few weeks now. In the session, it is one of the underperformers across the major altcoins within the crypto market.
Since the 6th August 2017, a large head and shoulders pattern can be seen forming. The left shoulder and head have both been formed. BCH/USD continued downside has seen the right shoulder formation making some ground.
Technically, as mentioned above for BCH/USD and the H&S pattern, this is a big one to potentially watch, given the extent of how far it goes back. The neckline would be key to observe, to see if the price will bounce off as support or have an extended chunky move south. $800 would be the level to watch. There isn’t too much support seen in between, some soft bidding may be seen prior to that at the $900 area.
BCH/USD daily chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
