Disclaimer: The results of the analysis below are the author’s sole opinion and should not be considered investment advice.
Bitcoin Cash (BCH) sellers quickly removed a noticeable plunge from the $ 719 resistance in 11 months. The bearish rally then stopped in the long-term liquidity range near its control point (POC, red).
Given the current structure under that EMA ribbon, sellers have visibly steered short-term trends. Therefore, the railing at the top of the pitchfork may continue to attempt a significant bullish recovery on the laces. At the time of the press, BCH was trading at $ 307.2.
BCH daily chart
Over the past few months, the altcoin movement has been under a lot of selling pressure. It was confirmed that the bear cycle was reversed due to the recovery from the low price in late January. With this bullish effort, buyers have created a double bottom pattern in their daily time frame. Therefore, BCH was in a hurry to test the current upchannel (yellow) uptrend line.
Immediately after a short revival on the EMA ribbon, BCH succumbed to a bearish trend. Subsequent plunges under the ribbon compressed the movement between 20EMA and POC.
As the gap between the EMA ribbons widened, sellers showed a tangible short-term advantage. They gained even more momentum after the evening star setup that pulled BCH towards the median of pitchfork.
Below the current pattern, alt may test POC in future sessions. In this case, it is important to maintain $ 275 support to prevent large fallout. Just above the top fence of the pitchfork is what the Bulls need to change their current selling trends.
The Relative Strength Index gradually rose from the baseline of the 33 mark. However, seeing a change in momentum in favor of the buyer has not yet challenged the equilibrium.
In addition, OBV continued to show an increase in underlying purchasing power during the last 14 days of plunge in price behavior. Therefore, price recovery near the top trendline of pitchfork should not surprise investors.
Looking at the presstime market structure combined with sales sentiment, the top trend lines of the EMA ribbon and pitchfork continue to pose hurdles in the recovery process. Breaks below the up channel should warn traders of potential drawdowns.
In addition, BCH shares an 89% 30-day correlation with Kingcoin. Therefore, monitoring the movement of Bitcoin is essential for making accurate decisions.