- Bitcoin Cash price is contained inside an ascending broadening wedge pattern.
- The digital asset is at risk of a 19% collapse down to $560.
- A key indicator has presented a sell signal, giving better odds to the bears.
Bitcoin Cash price has been slowly climbing from a low of $601 on February 15 to $719 at the time of writing but could be on the verge of collapsing. There are many indicators that show BCH is extremely bearish and awaits a 19% downswing.
Bitcoin Cash price will fall to $560 if this key support level fails to hold
On the 4-hour chart, BCH has established an ascending broadening wedge which seems to be on the verge of a potential breakdown. Losing the key support level at $700 would quickly push Bitcoin Cash price down to $560.
BCH/USD 4-hour chart
Additionally, on the daily chart, the TD Sequential indicator presented a sell signal on February 16, giving the upper hand to the bears. Using the Fibonacci Retracement tool, we can see that the nearest support level is located at $662, the 78.6% level. Below this point, the next level is established at $575 which is the 61.8% fib level coinciding with our price target above.
BCH/USD daily chart
Even worse for Bitcoin Cash bulls is the fact that the number of whales holding between 1,000 and 10,000 BCH coins has significantly dropped from 1,586 on February 15 to only 1,537 currently, indicating that large holders have exited their positions expecting a correction.
BCH Holders Distribution
However, if BCH bulls can hold the key support level of $700 and see a rebound above $745, they would invalidate the sell signal and the bearish outlook with the potential to push Bitcoin Cash price up to $830 at the top of the broadening wedge.
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