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Bitcoin Cash [BCH/USD] Technical Analysis: Market to depreciate after green confetti?

Priyamvada Singh

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Bitcoin Cash [BCH/USD] Technical Analysis: Market to depreciate after green confetti?
Source: Pixabay

After regaining volatility to some extent, the cryptocurrency market is swinging on its upside potential today. At the onset of its hard fork, Bitcoin Cash [BCH] has been experiencing occasional pumps, making the price graph look like a bull marathon.

At the time of writing, BCH was trading at 559.35, with a market cap of $9.75 billion. The coin was exhibiting a hike of 3.89% with a 24-hour trading volume of $1.23 billion at the time of writing, which is a significant add-on to the earlier trading volume this week, evaluated at around $250 million.

1-hour:

BCHUSD 1-hour candlesticks | Source: tradingview

BCHUSD 1-hour candlesticks | Source: tradingview

In the one-hour time frame, the uptrend is approaching from $476.78 to $536.7, whereas the resistance level is set at $584.89, after a consistent staircase climb of the token. The support line is showing a strong positive trend, indicative of a positive feedback.

The Parabolic SAR is bullish on the BCH market, predicting a healthy price trend. The dots are floating below the candlesticks, providing support to the green team.

The Chaikin Money Flow is singing a different tune, flashing red light on the prices. The reading line is currently moving downwards and is below the 0-mark to side with the bear.

The Awesome Oscillator is accompanying the above prediction and is glowing red in the wake of a negative prediction.

1-day:

BCHUSD 1-day candlesticks | Source: tradingview

BCHUSD 1-day candlesticks | Source: tradingview

The candlesticks pertaining to the one-day timeframe are depicting an interesting possibility of resistance breakage at the moment. The candles might trek above the resistance level of $565.76 set in the month of September as it has already reached that point. Furthermore, the support level is set at $413.65.

A weaker resistance level, set earlier in the month of September at $650.96, is stretching a downtrend all the way down to the current resistance point.

The Bollinger Bands are showing a wild upcoming volatility for Bitcoin Cash. The bands were running in a narrow pattern but opened its mouth like a snake attacking its prey to show the ferocity of the market.

The Klinger Oscillator has made a bullish crossover and has peaked to new heights in support of the bull.

Similarly, the RSI has entered the overbought zone, indicating a trend reversal, resulting in a downtrend from here on.

Conclusion

The technical analysis concludes that the market has been bullish but will soon make a reverse move on the current trend as it has hit the overbought zone. Except for Parabolic SAR, all the other indicators are reflecting a reddish hue in the upcoming price trend.




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Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

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