Bitcoin Cash aka BCH is trading at $234 and has a market cap of $4.2 billion, however, it has been pushed down in terms of ranking to the 5th spot. Once in the 4th spot, BCH is now the 4th largest cryptocurrency in terms of market cap. This is mainly due to Tether’s market cap increasing at an unprecedented level in 2020.
At press time, the 24-hour price action showed a decline of almost 3%, which is obvious considering the drop that BTC faced. This price analysis is a medium-to-long-term one and tried to analyze the movement of the price in the upcoming week or more.
Bitcoin Cash’s Daily Chart
BCHUSD TradingView
From the above chart, it is clear that BCH’s price has been consolidating since the March crash. This consolidation has taken the shape of a symmetrical triangle which has a possibility of breaking either way. In addition, the surge in the price of BCH has been stopped by the 0.618 Fib level at $244.80, which has been resistance since early April.
As the price reached the lower end of the pattern, two things can be expected here, a bounce from the lower line and towards the upper end, or a breach of the lower line and into the immediate support at $223.18.
Upon further examination, it can be seen that the price has formed three lower highs, while the RSI has formed 3 higher highs, indicating the existence of “hidden bearish divergence”. The bias of this divergence, as the name indicates, is towards the bears. Hence, the price’s movement in the next few days can be expected to head south.
Conclusion
To make the matters worse, the 50 DMA [yellow] and the 200 DMA [purple] are both above the price, further hindering any moves higher. Combining the bearish divergence and the 50, 200DMA’s position, it is highly unlikely for the price to head higher and sustain there. Regardless, the price might hit a few more bounces inside the pattern before breaching the pattern altogether.
