Bitcoin Cash Rally Loses Momentum After Reaching Yearly High
The Bitcoin Cash (BCH) price has experienced a slight decline since reaching its yearly high of $329 on June 30. However, the recent breakdown from a short-term pattern raises concerns about the future of BCH.
BCH Price Movement and Trend
Earlier this year, the BCH price broke out from a long-term descending resistance trend line that had been in place for over 600 days. This breakout led to a new yearly high in June before the rally lost steam. Currently, BCH is trading within a long-term range, with a lower high created in October.
RSI Indicator and Trend Analysis
The Relative Strength Index (RSI) is a momentum indicator used by traders to determine if a market is overbought or oversold. The RSI reading for BCH is mixed, as it is falling but still above 50. Readings above 50 suggest an advantage for bulls, while readings below 50 indicate the opposite.
Predicting the End of BCH Correction
While the weekly timeframe reading for BCH is mixed, the daily timeframe suggests a bearish trend. The price action shows a breakdown from an ascending parallel channel, indicating the end of the previous upward movement. Additionally, the daily RSI is below 50 and falling, further supporting the bearish trend.
Crypto Trader’s Perspective
Cryptocurrency trader TyDigital believes that after an initial fall to support, the BCH price will significantly increase. He considers $150 to be a strong buy zone if BCH reaches that level.
Possible Downward Movement and Resistance Levels
If the downward movement continues, BCH could fall by another 18% and reach the $180 horizontal support area, which coincides with the 0.618 Fib retracement support level. However, reclaiming the channel’s support trend line could lead to a 36% increase to the next resistance at $300.
Hot Take: Bearish Outlook for BCH
While there is some optimism about a potential rebound for BCH, the current trend suggests a bearish outlook. Traders should closely monitor the price action and RSI readings for further insights into the future movement of Bitcoin Cash.
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