Bitcoin Cash Gains on 38% Rise in Trading Volume

Bitcoin Cash Gains on 38% Rise in Trading Volume

bitcoin cash is on the rise amid rising volumes, but is still within a bearish falling-channel pattern for now, the price charts indicate.

As of writing, the world’s fourth-largest cryptocurrency by market capitalization is changing hands at $1,281, having appreciated by over 8 percent in the last 24 hours, as per CoinMarketCap data.

With trading volumes up by 38 percent, the recovery from the Sunday’s low of $1,143 looks sustainable. However, BCH is still down 22 percent from its Feb. 18 high of $1,641, and it’s too early to say whether the cryptocurrency has resumed the uptrend from the Feb. 6 low of $764.

Price chart analysis also indicates BCH is stuck in a bearish falling-channel pattern characterized by lower highs and lower lows.

Daily chart

The above chart (prices as per Bitfinex) shows:

• The recovery from the Feb. 6 low of $758 ran into offers around the head-and-shoulders neckline resistance (former support) 10 days ago. The subsequent sell-off to $1,129 on Saturday reinforced the bearish view.
• The 50-day moving average (MA) and 100-day MA bearish crossover (short-term average cuts long-term average from above) also favors the bears.

View

A daily close (as per UTC) above the falling channel resistance (currently seen at $1,520) would signal the rally from the Feb. 6 low has resumed. BCH could then revisit $2,000 (psychological resistance) and $2,110 (Jan. 20 high).

On the downside, a daily close (as per UTC) below $1,129 (Saturday’s low) would establish lower highs and lower lows pattern inside a bigger falling channel, and would shift attention to $1,000. A violation there would expose the Feb. 6 low of $758.

Candlesticks image via Shutterstock

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Published at Tue, 27 Feb 2018 13:00:47 +0000

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