Just like EOS, Bitcoin Cash is attempting an inverse head and shoulders pattern on the hourly chart of BCH/USD. Bitcoin, on the other hand, is is heading to the bullish territory. The Bitcoin Cash neckline is around $705 and $710. The price action is between 4H EMAs 12 & 26. If the bulls break this level, they will gain momentum and the price will rise.
Bitcoin Cash (BCH) Price Today – BCH / USD
If Bitcoin Cash is unable to break this neckline, the trading session may close at $685. The relative strength index is cool enough for a leg down. You can trade bullish but keep in mind that the price is still in the bearish territory. Make sure your plays are secure and conservative to avoid losses.
Bitcoin Cash is Consolidating
The Bitcoin Cash price has been consolidating on the downward trend for about 8 months now. There has also been an occurrence of fast, and low moving averages above the current rates with slight declines that technically create downward pressure. The price is unlikely to have significant movements downward or upward this summer.
If this stagnation continues, the bulls will have the chance to build their momentum and fire down in the market. Until autumn, both options will be in play. Traders need to watch and monitor the situation.
Is Bitcoin Cash Reaching a Double Bottom?
Bitcoin Cash hit a double bottom area but bounced off after a while. The MACD on the hourly chart crossed up on the daily while the relative strength index broke out of the downward trend. The price hit the last resistance before bouncing off and consolidating. The price is going to move up but how high it will go isn’t clear yet. Bitcoin is approaching a massive trendline and if Bitcoin Cash follows the same path, the price will improve and may reach the $900 or $1000 level. After reaching this level, the price will start reverting backward.