The Bitcoin market has been rallying higher despite it witnessing small corrections over the past week. Its hard fork, Bitcoin Cash [BCH] has been seeing the price also consolidate between trends.
BCH reported a market capitalization of $10.38 billion and had taken the fourteenth position on the CoinMarketCap list and was being traded at $548.
Bitcoin Cash 1-day chart
Source: BCHUSD on TradingView
The above chart of Bitcoin Cash was indicating the price of the digital asset had dropped towards the end of February. This drop pushed the price as low as $404.
However, after the fall the digital asset recovered and was now trading at the level seen at the beginning of the year.
Reasoning
The volatility has escaped the market as the price moves sideways. The price has been restricted between $610 and $488 while the signal line has been moving closely under the price bars. This indicated that despite consolidation, there was still bullishness in the market.
The 50 moving average, however, moved above the candlesticks indicating that the price began to trend lower. Meanwhile, the relative strength index was close to equilibrium before, which suggested the buyers and sellers were equally participating in the market.
However, the market momentum had fallen to the bears’ side but was now trying to recover as it moved to the positive territory. Although the selling pressure was visible recently, the buyers were trying to balance the market and stabilize the price at $548.
Conclusion
The current chart of Bitcoin Cash indicated the loss of volatility. The price has been closely consolidating within a tight range and has found support near $548. As the signal line supported the value, the traders were balancing out the selling and buying pressures in the market. This was an indication that the price may continue to move sideways unless external volatility impacts the market.
