Bitcoin Cash has seen a small 0.85% price decline over the past 24 hours of trading as the coin currently is exchanging hands at a price of $481.53, at the time of writing.
- Bitcoin Cash has retraced to support at the 21 days EMA.
- Is the market is positioned to make another rally ahead of the fork?
- Support moving forward; $480, $461, $437, $420, $400.
- Resistance moving forward; $528, $556, $581, $600, $641, $667, $704.
If the candlestick closes at the current level it will form a Doji candlestick indecision strong indecision within the market which is expected with the upcoming expected hard fork.
The cryptocurrency has seen a steep price drop over the past 7 trading days which has totaled -16.55%.
Bitcoin Cash is currently ranked in 4th position ahead of the fork as it holds a market cap value just underneath $9 million. The 16-month-old project is currently trading at a price that is -87% lower than the all-time high value.
Let us continue to analyze price action a little closer over the short term and highlight potential support and resistance zones.
Bitcoin Cash Price Analysis
Analyzing price action from the short term perspective above, we can see that the market has continued to retrace after placing the high at $646 on the 7th of November 2018. The market had surged from a low of $410 increasing by over 58%.
Price action has dropped below support at the short term .5 Fibonacci Retracement level (drawn in green) priced at $528 to where it is currently trading at the support provided by the 21 days EMA around the $520 handle.
Looking ahead, if the bearish pressure continues to push price action below the support at $520 we can expect immediate support below to be located at the short-term .618 Fibonacci Retracement level priced at $500. This support level is supported by a downside 1.272 Fibonacci Extension level (drawn in blue) and added psychological round number level support.
If the sellers continue to break below $500 we can then expect further support beneath to be located at the short-term .786 and .866 Fibonacci Retracement level priced at $461 and $437 respectively. The final level of strong support to highlight is located at the downside 1.414 Fibonacci Extension level (drawn in blue) priced at $420.
On the other hand, in our bullish outline, if the buyers can regroup and start to drive price action above the resistance at $528 we can expect higher resistance to be located at the .382 and .236 Fibonacci Retracement levels (drawn in green) priced at $556 and $591 respectively.
If the buyers can continue to drive the market back above $600 we can then expect higher resistance above to be located at the 1.272 and 1.414 Fibonacci Extension levels (drawn in blue) priced at $641 and $667 respectively. The final level of resistance to highlight is located at the 1.618 Fibonacci Extension level (drawn in red) priced at $704.
The RSI has returned to the 50 handle which indicates that the market is in a period of indecision. If the bulls can push the RSI back above the 50 handles we could expect BCH to make another rally ahead of the fork once again.
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Yaz is a cryptocurrency technical analyst and has been actively trading financial markets for over 7years, with 4 years of crypto experience. He is an Economics graduate who has taken a keen interest on the future potentials of blockchain in the financial industry. Aside from cryptocurrency and trading Yaz enjoys spending his time watching his favourite football team (Liverpool F.C.) compete as well as keeping up-to-date with the UFC. Reach out to him at [email protected]