11.3 C
Amsterdam
25 September 2022
PumpMoonshot
Image default
News

Bitcoin Cash faces re-test at $234


It has been a chaotic few days for digital assets; it started with Bitcoin breaching $10,000 range but within the next 24-hours, a $500 depreciation was witnessed.

Bitcoin Cash faced a similar situation but a noticeable trend suggested that the correction phase might have just begun for the fifth-largest digital asset.

Bitcoin Cash 4-hour chart

BCH/USD on Trading View

From 17th May to 25th May, BCH’s price followed the path of a descending channel as the asset came close to testing its long-term support at $219. However, an uptrend breakout from the pattern ensured Bitcoin Cash’s breach of immediate resistance at $234. Since 28th May, the asset has been able to comply with the bullish narrative as resistance at $243 was breached. However, after a quick test of resistance at $265, the asset was back below $250.

Although the coin sustained above $250, an ascending broadening wedge appeared at press time. A pattern marked with a bearish breakout, BCH currently faces another retracement which may take the coin down to $234.

Relative Strength Index or RSI remained optimistic with buying pressure holding the upper hand against selling pressure.

Bitcoin 1-day chart

BCH/USD on Trading View

With the 4-hour chart appearing extremely volatile, long-term chart of Bitcoin Cash provided more clarity. BCH has tested resistance at $265 four times since April 7th 2020.

The recent surge to the point of resistance was again thwarted by 200-Moving Average; consolidation between $266 and $219 remained imminent. With the exhaustion of buying pressure, the coin is most likely to attain another pullback to $219, which has been the case since April.

Conclusion

Although there has been a consistent indication for another rally, the coin looks primed for a period of correction before breaching resistance at $265. Support at $219 will hold firm but support at $234 might get breached over the next week.

News source

Related posts

Centralization in Ethereum 2.0 worries its creator, Vitalik Buterin

PumpMoonshot

FaniTrade Launches The FANI Utility Token Which Unlocks 30% APY Through Staking And Other Benefits

PumpMoonshot

Uniswap (UNI) Added to the Bitwise 10 Large Cap Crypto Index

PumpMoonshot