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Bitcoin Cash Retraces After Falling Below $500 - Technical Analysis

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Written by   131
10 months ago

While Bitcoin and other major Altcoins broke pass their ATH, Bitcoin Cash keeps struggling to secure a position above $1000 to rescue itself back on the All time Highs. Like most of the Altcoins, Bitcoin Cash had also witnessed a price depreciation but still, there's no cause for an alarm.

Despite the rejection from $700 in the 15th of February, the Bullish structure is still intact. Thus, Bitcoin Cash is expected to continue increasing and could possibly break through $1000 Before March ends.

A rebounce occurred on the 1st of March which got Bitcoin Cash up at 8.87% after closing the previous day at $460, a position close to the support.

Well, for those of us who followed closely the analysis and chart trends made by Bitcoin Cash, the 28th of February gave the opportunity to buy the dip as we get ready for another massive movement by Bitcoin Cash in March which may likely lead us above $1000 before the 20th.

Bitcoin Cash price has been trading below a key resistance level but remains bullish in the short-term. Now, BCH aims for more after establishing a key pattern on the 4-hour chart.

Updates from the fundamentals have it that the recovery from the dip occured due to a major boost when Rakuten, A Japanese company announce it's acceptance for Bitcoin Cash and other crypto Currencies like Bitcoin and Ethereum.

On the four hour chart, we see that the BCH price has risen and formed a small ascending channel. In fact, the price has just moved slightly above the lower line of this channel. Also, a closer assessment shows that the price has formed an inverted head and shoulders pattern whose neckline is at the upper side of the channel.

This could mean a rebounce which will potentially lead Bitcoin Cash to $600 in a short term.

The CVIX of Bitcoin Cash is currently flashing 73, which means that traders must brace themselves for significant price fluctuation that needs to be dealt with accordingly. The most basic approach to use when trading with CVIX in any market, whether it is cryptocurrency or stocks, is to set the buy triggers when the volatility goes overboard. The fear is prevailing in the Bitcoin Cash market that will subsequently lead to a substantial price drop. For those traders who already acquired a position, the high red CVIX implies that the time has come to elaborate on an exit strategy since high volatility combined with fearful sentiment generally results in a sizable price drop. The current price of Bitcoin Cash is $515.81, established on the back of the -4.30% decrease in the last 24 hours. In the past 30 days, the price of Bitcoin Cash has increased by 23.93%, while its accomplishments on the 1-year time frame amount to 86.75%.The expected volatility for the next 10-15 days is at its highest values.

Taking a look at the trading volume of Bitcoin Cash for the past 24 hrs, it is obtained that it has traded over $3,973,555, 292, this shows that there have been an increasing demand for Bitcoin Cash possibly due to its low transaction fees and efforts towards Merchant Adoption. This acts as a major back up to our bullish predictions towards the price of Bitcoin Cash in the coming days.

Read Also: Bitcoin Cash may Hit $2000 By March

Disclaimer

Please note that this has been constructed out of observations on the trading patterns of Bitcoin Cash and is in no way portraying an investment advise. Therefore it is adviseble that before investing in any crypto currency, one must endeavor to DYOR.

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Written by   131
10 months ago
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Comments

We are definitely looking into having more than 1k dollar 🤑

$ 0.00
10 months ago

Even though this is a personal opinion, I believe you have some experience regarding this assessment. I hope there is a lot of information on this. My friend said to be able to read the market, we have to be able to read 1000+ schematics and information changes

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10 months ago