Disclaimer: The following analysis results are the sole opinion of the authors and should not be considered investment advice.
The value of bitcoin reached another all-time high at $40k, and as expected, the value of other cryptocurrencies, including hard forks, is also gathering bitcoin cash [BCH]. However, digital assets are currently under downward pressure as prices have fallen by almost 7% over the past 24 hours.
As of this writing, BCH was trading at $417, and according to the daily candle, the low was hit at $400.
Bitcoin Cash One Day Chart
Source: BCH/USD on TradingView
BCH's daily chart explained the rising price of cryptocurrencies within ascending channels. The ascending channel surged BCH's price to a new high of $505 through various resistances.
As BTC's hard fork continues to trade for more than $400, we are seeing selling pressure that will be an opportunity for traders to sell their coins and make a profit during the selling pressure.
Reasoning
The Relative Strength Index fell below the overbought area given the sell-offs witnessed while writing. This pressure could have been triggered by the bitcoin downtrend, which looks at $38,000. These pressures in the BTC market could lower prices even further.
On the other hand, Awesome Oscillator has not yet reflected these changes in the market. Currently, it is showing a strong green bar indicating a strong BCH buy, but with the formation of a red daily candle, the AO should reflect declining buyers' momentum and increased selling.
However, with the 50 moving average also staying below the price bar, the market trend remained strong. Even if the price falls, the trend may not be volatile.
location
Admission Ticket: $410
Stop Loss: $422
Take Profit: $384
Risk reward: 2.23
conclusion
The Bitcoin Cash market is paying attention to the decline in the value of digital assets in a bull market. This could give traders a short chance to profit from the next support of $384.
