Bitcoin Cash: Is shorting the way to go forward for BCH traders

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.

Bitcoin Cash [BCH] has been subjected to heavy sell-offs in the last six weeks post an up-channel (yellow) breakdown on 30 April. The price has been hovering near the lower band of the Bollinger Bands (BB) for the most part ever since.

Track live crypto price of 10000+ coins!

A convincing close below the two-month trendline support (yellow, dashed) would open doorways for an extended retracement. Any close below the $148-zone would delay the bullish revival chances in the near term. At press time, BCH was trading at $151.9, down by 7.75%in the last 24 hours.

BCH Daily Chart

Source: TradingView, BCH/USDT

Given the aggregated fear sentiment, it has been relatively simple for BCH sellers to find fresher grounds to rest on. A reversal from the $362-zone in April chalked out a two-month trendline support on the daily timeframe.

Since then, the coin has been on a steady fall. The broader liquidations pulled BCH down to its 27-month low at the time of writing.

With BB’s lower and upper bands looking opposite ways, the bears would now strive to push for a high volatility phase in the coming days. As the trading volumes were in a decline phase, the trend was yet to take a compelling shape.

Related:  Bitcoin Capitulation Over? Short-Term Holders Bought 330K BTC Since Terra Collapse

Any close below the 148-support would pull BCH for a further downside toward the $136-level. Post this, the bulls would likely aim to counter the selling pressure for its multi-yearly lows. A near-term bullish revival would likely be short-lived by the south-looking basis line of BB.


Source: TradingView, BCH/USDT

Over the last three days, the bearish RSI snapped the 38-resistance to dip into the oversold region. A potential bounce-back could delay any further corrections on the chart.

With the MACD lines undertaking a bearish crossover after nearly three weeks, the selling pressure saw a resurgence. The buyers still needed to bridge the gap between MACD lines and the zero-mark to claim an edge.


The altcoin exhibited a one-sided bearish structure. A robust breach below the two-month trendline support would blend well with the bearish narrative. A close below the $148-mark would reaffirm a shorting signal.

But with oversold readings on the RSI, buyers could the onslaught by countering the near-term selling pressure.

Moreover, BCH shares a 47% 30-day correlation with the king coin. Thus, keeping a watch on Bitcoin’s movement would be vital in making an accurate decision.

Download MAXBIT Android App, Your best source of all crypto news!

Google Play

Source link

Share this article: