The Bitcoin market has been surging over the past couple of days and given the strong correlation between Bitcoin and its hard fork, Bitcoin Cash [BCH], the latter has noted a boost in its value too. In fact, BCH’s price climbed by 13.16% in the last 3 days. However, the crypto was soon dealing with a lot of selling pressure on the charts as its value slipped to $239.30 from $245 a few hours ago.
The long-term chart for BCH highlighted the crypto’s rising price within the ascending channel formation. After the price recorded a strong push upwards earlier in October, the market opened itself to volatility, with the same remaining high since.
In fact, the Bollinger Bands haven’t diverged this much in a while and traders may witness yet another price swing soon. While BCH’s press time price was trying to form a higher high than its previous candles, there was a lot of selling pressure evolving.
However, at the time of writing, BCH remained on a bullish rally as even the position of the Signal line suggested that the price trend was moving up. Interestingly, the crypto-asset had just returned from the overbought zone and remained close to it. Further, the Relative Strength Index suggested that the buyers were bullishly buying BCH, but as the crypto-asset reached the overbought zone, there could be a trend reversal.
Bitcoin Cash’s price had been trying to recover from the September fall for a while, but was consolidating for nearly a month between $234 and $221. However, after the cryptocurrency breached its resistance at $235, it has been moving closer to $246, a level that had not been tested recently. With bulls siding with the coin, BCH may find opportunities to re-test this level, before finally breaching it.
@MarcDeMesel sim am I right?
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