Bitrabo Editorial
For the past four weeks, Bitcoin Cash (BCH) has been trying to maintain its position on the Golden Ratio support level. However, if the support line breaks under the pressure of sellers, the price might experience a sharp decline.
Last week, BCH went through a major devaluation of around 23%. This happened when BCH broke through the Golden Ratio support mark, which was at $112, leading to a significant contraction in its price.
Although BCH has rebounded from the support level at $87 – $97, demonstrating a bullish turn, the Moving Average Convergence Divergence (MACD) is pointing towards a bearish trend for weeks with its downward trajectory. Furthermore, the bearish crossover in the MACD lines confirms the trend. The Relative Strength Index (RSI) is currently neutral, displaying neither bullish nor bearish signs at this moment.
Bitcoin Cash Tests Last Support
On the monthly chart, the MACD is moving in an upward direction slowly and gradually, indicating a bullish trend. There is also a possibility of a bullish crossover of the MACD lines in the near future.
However, it is essential to note that BCH rests on its final support level. If this level breaks down, there could be a substantial downside potential, nearly approaching zero.
Daily Chart Death Cross Signals Bearish Tone
The daily chart displays a Death Cross pattern, which reaffirms the bearish trend in the short to medium term.
Moreover, the MACD is gradually declining in a bearish fashion, while the MACD lines remain crossed bearishly. Additionally, the Relative Strength Index (RSI) is gradually approaching the oversold region.
4H Chart Death Cross: Bearish Signal Intensifies
The presence of a Death Cross on the 4-hour chart confirms the short-term bearish trend. However, it is essential to note that the MACD indicator is displaying a clear bullish signal.
The MACD histogram shows an upward trend in a bullish manner, and the MACD lines cross each other in a bullish fashion.
In addition, BCH has made a strong comeback within the support zone and exhibited a significant surge of approximately 15.3% in its price. If BCH maintains its high momentum, it will encounter noteworthy Fibonacci resistance levels at around $114.8 and approximately $130.
BCH Shows a Short-Term Rebound Against BTC
The price of Bitcoin Cash (BCH) trended downward against BTC. Furthermore, the MACD demonstrated a bearish trend over the past few months, potentially leading to a bearish crossover of the MACD lines in the near future.
The Relative Strength Index (RSI) indicates an oversold condition currently. Despite these indicators, BCH is displaying signs of a bullish rebound and establishing strong support along a trend line. The next significant Fib resistances will be around 0.005 BTC and approximately 0.006 BTC.
Disclaimer
This price analysis article is for informational purposes only and should not be considered financial or investment advice in accordance with the Trust Project guidelines. Bitrabo stands committed to accurate, unbiased reporting. However, the market conditions may change without any prior notice. Always conduct adequate research and consult with a proficient professional before making any financial decisions.