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Bitcoin Cash [BCH] Technical Analysis: Token falls yet again as market looks bleak

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Bitcoin Cash [BCH] Technical Analysis: Token falls yet again as market looks bleak
Source: Pixabay

The brief rise in the cryptocurrency market earlier this week sparked hopes of a market upheaval, but those hopes soon faded away. Major coins are now turning red, with the collective market cap looking to once again drop below $120 billion. Bitcoin Cash [BCH], now regaining its long-held fourth spot on the coin ladder has once again fallen, with the likes of Ethereum [ETH] and Tron [TRX] following suit, as the market correction begins.

Bitcoin Cash’s price has fallen below the $130-mark and is now trading at $128.41, with a market cap of $2.25 billion, less than $100 million ahead of EOS [EOS], in the fifth spot. The maximum trading volume emanates from the Singapore-based Huobi, accounting for $12.37 million or 6.48 percent with the BCH/USDT pair.

1-hour

Bitcoin Cash [BCH] Technical Analysis: BCH falls yet again as market looks bleak

Source: Trading View

As per the above one-hour chart, Bitcoin Cash has seen an immediate downtrend extending from $132.11 to $127.25 with an earlier significant downtrend of $161.44 to $132.78. Between the two downtrends, a brief uptrend was also witnessed from $123.42 to $128.58. The coin had a resistance point at $136.32, with two prominent previous support levels of $127.84, and $121.45. The immediate support point was recorded at $124.8.

The Bollinger Bands point to an increase in the volatility of the coin, as the trend switched from green to red, with the Moving Average line pointing to a bearish trend.

The Parabolic SAR indicates that the coin is in a bearish phase, with the dotted line aligned above the coin’s candlesticks.

The Awesome Oscillator points to a bearish market as the AO line has dipped below the zero-line, with the momentum rising.

1-day

Bitcoin Cash [BCH] Technical Analysis: BCH falls yet again as market looks bleak

Source: Trading View

The one-day trend line is marred by memories of the November 2018 hardfork, which gave rise to the now tenth-ranked cryptocurrency, Bitcoin SV [BSV]. Two noticeable downtrends, prior to the hardfork, extended from $827.09 to $571.3 and $621.03 to $510.9 and the major post-hardfork downtrend ranging from $621.74 to $134.77. BCH enjoyed a minor uptrend during the close of 2018 from $79.98 to $144.77.

The resistance level of the coin prior to the hardfork was $628.83, with the coin currently trading 79.57 percent below the aforementioned point. BCH’s support level was last recorded at $75.04, which the coin has never breached.

The MACD line suggests that the coin tried to break into a bullish trend but was ensconced by the bears as the collective market declined.

The Relative Strength Indicator shows that the coin is being off-loaded by the investors as the BCH price looks to dip. At press time, the RSI was recorded at 39.27, closing in on the ‘oversold’ zone.

The Fisher Transform indicator shows that the Fisher line overtook the Trigger line at the end of the first week of the year to signal bearish movement.

Conclusion

Bitcoin Cash has been on a steep decline post its hardfork, with the price of the coin dropping by over 70 percent since November. Despite the end of the year hopes, the bears are closing in on the third most-prominent altcoin, with the chances of a reversal looking bleak.

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