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- BCH bounced from a high of $1243 to a low of $992 all within Monday’s intraday session
- The BCH/USD pair is currently trailing at 0.024 with a loss of 2.73% at press time
- The current price of BCH is converged between the 20 DMA and the 200 DMA on the daily chart
The daily chart of BCH forecasts a bullish trend reversal after the price cascaded by a massive 42% on account of bearish divergence. As anticipated in our previous analysis, the price managed to sustain above the 200 DMA. According to pivot points, strong support is placed at $925 which is in confluence with the 200 DMA. This particular level could be exposed if the volume fails to supersede the current trend of BCH.
Earlier today, the bulls attempted to rebound but are seeing resistance around $1136 as a consequence of bearish Fib retracement of 0.236. Yesterday’s fall has caused BCH to grab support at $981 which is in synch with the rising support trend line.
The long-term price action of BTC is restricted inside the bearish H&S pattern and a bearish scenario for BTC could invalidate BCH’S chances of a bullish trend reversal.
The 4-hour chart projects the accumulation phase for BCH.
The contemporary price of BCH is sitting at a long-term resistance area which has been flipped as support. The 4-hour chart of BCH depicts an accumulation phase as bulls are facing pressure in tackling the resistance of 0.236 FIB.
At press time, the 4-hour price action has closed with bearish engulfing as evidenced by the enormous red candlestick. This pattern will be accompanied by a retracement plunging the price down to yesterday’s lows and retesting that as level support.
However, the negligence of the 20 EMA to undergo death cross would contradict the above statement. A decisive close above FIB 0.236 would encourage the EMA’s to entertain a bullish crossover prompting the major EMAs to be in sync with the price action.
The RSI (bullish) has tanked down to the oversold territory giving investors an excellent opportunity to go long on BCH at the current price.
The MACD(slightly bullish) is about to transpire a bullish crossover which will escort the histogram back into the positive territory.
SUPPORT : $925, $981
RESISTANCE: $1136, $1234
Malishka
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
