Disclaimer: The following article attempts to analyze the evolving pattern in the Bitcoin Cash short-term market and its impact on the price.
A massive dump was witnessed across major cryptocurrencies during the weekend. As Bitcoin’s value dropped by 12% within an hour, its fork, Bitcoin Cash [BCH] also noted a fall of 29.39% within an hour. During this time period, the price of BCH was $339.6, which slashed to $239.86. However, the price bounced back within the next hour and was at $292.37, at press time. The coin managed to surpass the $300, however, the resistance pushed the price lower once again.
According to the above hourly chart, the price has been trending lower over the past few hours. This movement of the price gave rise to a descending channel as the two parallel lines, marked BCH’s lower lows and lower highs. This downward-moving price was a part of a bullish pattern which suggested that a price reversal was imminent in the Bitcoin Cash market.
The existing trend in the market was slightly bullish, as the Parabolic Indicators suggested an upwards building pressure as the markers aligned under the price bars. Similarly, the coin was in the equilibrium zone which meant the buying and the selling pressures evened each other, at press time.
Thus, if the coin breaches the bullish pattern, it may move towards its first target at $297.43, which has been a strong resistance. The second price point, that would be difficult for BCH to push through was $312.93, after which it may take some time to rise higher.
The Visible Range, however, indicated that the average price of BCH remained at $290.95, and even if the price falls, this red line will act as strong support in pushing the price higher. It has currently been the most traded price level, while $287.67 was the second, most-traded price, but was under the support. As the coin breaches out of the bullish pattern, BCH may witness high trading between $297 and $293 range.