This year, the price of cryptocurrencies have fallen significantly against the USD. The bear market started right after cryptocurrencies hit their all-time-highs. Recovering against the USD became a problem. As if that bearish pressure wasn’t enough, there was a BCH network clash that rocked the entire cryptocurrency market.
A technical analysis of the crypto charts shows that Bitcoin Cash (BCH) went up by 57% in
value as of December 20. Bitcoin Cash (BCH) is perhaps one of the few digital
assets to maintain a strong run despite
the bearish market sentiment. A closer look at the charts shows that buyer momentum is reasonable in
Bitcoin Cash (BCH) as it continues to remain among the top performing cryptocurrencies
in what has being a
torrid year for virtual assets.
Now with a trend reversal price movement forming on the
charts, we will critically analyze
whether Bitcoin Cash (BCH) strong performance for the week is coming to an end.
The Bitcoin Cash update led to a split of the network into two groups: Bitcoin ABC and Bitcoin SV. After the update, the price of all cryptocurrencies fell dramatically against the USD. Bitcoin Cash fell the most and at one point BSV traded higher against the USD than BCH.
Bitcoin Cash (BCH) Recovers Against The USD
Yesterday, BCH recovered against the USD
moving up by 57% within the day. The buyers gathered momentum in the morning
and BCH became one of the top performing cryptocurrencies. Notwithstanding, a
trend reversal pattern was formed meaning that the strong bullish pressure is
coming to an end soon. This was the second day in a role that BCH was able to
outperform other cryptocurrencies. Starting this week’s trading session at $78,
BCH was able to move as high as $175 yesterday alone.
The relative strength index and the MACD moved
into the bullish territory. The reversal signs on an hourly basis show that the
bears are diverging around the relative strength index and price of Thursday.
This is a clear sign of an upcoming reversal that shows up when the price of a
cryptocurrency forms higher highs even when the relative strength index forms
lower highs. It simply means that even if the buying pressure is reducing, the
price is rising.
Traders still had to be cautious because the price showed signs of falling yesterday even if the technical indicators didn’t show any signs. As expected, BCH started falling this morning along with most of the cryptocurrency market.
What are the Key Takeaways From the Bitcoin Cash
The key takeaways from the Bitcoin Cash price analysis
– Bitcoin Cash (BCH) continues to be among the top performers
with more than 45% appreciation in only the last 24 hours.
– There is bearish divergence that formed yesterday, yet
prices continued to increase because of the strong buyer momentum. The daily
RSI and MACd kept on increasing reflecting the level of buying momentum.
– We can also see a second bearish divergence forming. Traders
have to show caution when deciding whether to take this as a sign of reversal.
BCH Price Analysis Now
At the time of writing, BCH was trading at
$199.66. This shows that it is down by 8.07% against the USD and down by 6.11%
against Bitcoin. The trading volume over a 24 hour period is $1,123,769,731 and
the market capitalization is $3,498,856,161.