Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice
The cryptocurrency market has been seeing a volatile period in the short-term. Bitcoin Cash [BCH] is a case in point, with the popular Bitcoin fork noting a sharp upsurge in value followed by a wave of corrections in the hours before press time.
At the time of writing, the value of BCH was $538.73, with the alt having a market capitalization of $10.18 billion. Thanks partly to the performances of its fellow alts, Bitcoin Cash had been pushed down to the 14th position on CoinMarketCap.
Bitcoin Cash [BCH] hourly chart
Source: BCHUSD on TradingView
The Bitcoin Cash market recently hit a high of $554.91, following which it started retracing. In fact, BCH’s value fell under the support level at $544, with the alt trading close to $540, at the time of writing. The next support level was observed to be at $533, with the evolving selling pressure in the market likely to push the price to this level soon.
Reasoning
With volatility across the market increasing, BCH was seen moving towards the overbought zone. The Relative Strength Index was highlighting this growing saturation of buyers in the market, with the same noting a figure of 61 while pointing north.
However, a degree of bullish momentum in the market could be seen too, despite some of the market’s sellers trying to realize some profit. Despite a bearish crossover, the MACD was too close to the Signal line to suggest anything. In fact, it seemed likely that a strong surge could make its way into the market before the selling pressure finally takes over.
Crucial levels to watch out for
Entry-level: $541.91
Take Profit: $533.69
Stop-level: $544.50
Risk to Reward: 3.17
Conclusion
The Bitcoin Cash market, at press time, was retracing following its latest surge in price. It was supported at $533.44, but selling pressure was evolving and could push the price to this support level, a development that could earn profits for short traders.
