Bitcoin Cash Price Analysis: FUD Wildfire Catches BCH, Prices Down by 20%! – Coinpedia Fintech News
Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he’s trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he’s not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
With an intense rise in selling pressure, Bitcoin Cash price gives a bearish breakdown of a falling channel.
The breakdown rally approaches the 200-day EMA, with buyers hoping for a reversal.
With a market-wide FUD crashing altcoins, Bitcoin Cash price ends the consolidation range and falls under the 50-day EMA. Making two consecutive bearish candles, accounting for a 20% drop in BCH price, the breakdown rally tests the 200-day EMA.
At the confluence of the 200-day EMA and the 61.80% Fibonacci level, a lower price rejection shows a resurgence in buying pressure. With smart money flowing at lower prices, a potential retest of the breakdown is possible.
The downfall from the 50-day EMA to the 200-day EMA shoots the trading volume higher, reflecting a boom in the selling spree. This aligns with the market conditions and reflects a stronger bearish side.
Following the lower price rejection in the previous daily candle, the BCH coin price forms a Doji above the 61.80% Fibonacci level. This projects a potential reversal opportunity with a morning star pattern as a retest.
The technical indicator shows a rise in underlying bearish sentiments with the bearish MACD histograms resurfacing. Preventing a bullish crossover, the MACD and signal lines restart the declining trend. Furthermore, the RSI line enters the oversold territory.
With the lower price rejection in the previous candle and the market-wide FUD slowly getting under control, BCH price may find a reversal shortly. Furthermore, the confluence of the 61.80% Fibonacci level and the 200-day EMA at $175 provides a bounce pad for the BCH price.
Considering the prices manage a reversal, the Bitcoin Cash price can reach the overhead resistance at $228. On the flip side, a downfall below $175 will crash the BCH price to $150.