Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice
After propelling a fall below Bitcoin Cash (BCH)’s multi-year long trendline support and flipping it to resistance (yellow, dashed), the selling spree finally rested at the 16-month $275-support.
Looking at the press time setup below its 20/50 EMA, the thrust lay in the hands of bears. So, the upper fence of the pitchfork would likely constrict any substantial bullish recovery attempts in the near term.
At press time, BCH was trading at $313.5, up by 2.81% in the last 24 hours.
BCH Daily Chart
The altcoin has lost over 64% of its value since its November highs and poked its 13-month low on 24 February. With a bullish resurgence at the $275-floor, BCH finally gained momentum to challenge the bounds of its 20 EMA (red) and 50 EMA (cyan).
In this bullish endeavour, the buyers provoked a double-bottom pattern on the daily timeframe. Thus, BCH rushed to test the upper trendline of the current up-channel (yellow). Since then, however, the hefty sell-offs have hindered the journey toward the $385-resistance.
With the 20 EMA jumping below the 50 EMA (cyan) again, the buyers visibly exhibited their near-term dominance. They further sealed the deal with the evening star setup and pulled BCH towards the median of the Pitchfork.
Potential recoveries from this point would find a significant hurdle in the $326-$332 range. Thus, the altcoin would likely aim for a retest of the $304-mark support before making a committal move. Any fall below this level would open up gates for profit-taking for short-sellers.
The Relative Strength Index rose from its oversold region lows in an incremental manner. But, it is yet to challenge the equilibrium to confirm a change in momentum in favor of the buyers.
Interestingly, the OBV marked a bullish divergence with price over the last week. So, sustained price recovery towards the upper bonds of the Pitchfork should not surprise investors/traders.
Looking at the press time market structure fueled by the evening star setup, the EMAs and upper trendline of the Pitchfork would likely curtail any recoveries. A likely plunge on its charts could lead to a $302-retest before a trend-altering move.
At last, BCH shares an 89% 30-day correlation with the king coin. Thus, keeping a watch on Bitcoin’s movement would be vital in making an accurate decision.
This news is republished from another source. You can check the original article here.