Bitcoin Cash Price Analysis: Path of least resistance appears to the downside
- The No. 5 sees a likely dead cat bounce after Saturday’s corrective slide.
- BCH/USD looks vulnerable, as the recovery lack follow-through.
- The spot is the top loser amongst the top 5 favorite crypto coins over 24 hours.
Bitcoin Cash (BCH/USD) stalls its recovery just shy of the 458 threshold, having witnessed a sharp pullback from near an eight-month peak of 496.96 clocked last Friday. The bulls lack follow-through, as they take cues from a similar tone seen across the crypto space this Sunday. Over the last hours, the price has entered a consolidative mode near the 450 level, reporting 2.20% gains on a daily basis while down 8.50% over the last 24 hours. The market capitalization for BCH/USD stands at $8.16 billion.
BCH/USD 1-hour chart
No. 5 coin is teasing a bearish flag breakdown on hourly sticks, with the hourly Relative Strength Index (RSI) flattening below the mid-line.
An hourly close below the rising trendline support at 446.58 is needed to confirm the bearish continuation pattern.
Bears would target Saturday’s low of 421.30 on a bear flag breakdown.
On the flip side, the bulls need to regain the bearish 21-hourly Simple Moving Average (HMA), in order to revive the recovery momentum.
The next resistance awaits at the horizontal 200-HMA of 461.40, above which the rising trendline resistance will be tested at 463.80.
BCH/USD levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
