The volume of trading on Bitcoin Cash increased by 38%, but will this cryptocurrency be able to break out of the downward trend? Technical analysis
The price of Bitcoin Cash is rising amid rising volumes, but is still in the downward channel.
At the time of writing, the fourth largest cryptocurrency in the world in terms of market capitalization is trading well at $ 1.281, over the past 24 hours, an increase of 8%, according to CoinMarketCap.
With the growth of trading volumes by 38 percent, the recovery from the Sunday low of 1.143 dollars looks stable. However, the BCH price is still 22 percent lower than the February 18 high (1.641), and it’s too early to talk about an uptrend.
THAT indicates that BCH is stuck in a downward trend characterized by lower highs and lows.
The data is taken from the cryptocurrency exchange Bitfinex
The recovery from a minimum of $ 758 recorded on February 6 came across a strong resistance in the “head-shoulders” area (former support) 10 days ago. The subsequent sale, which lowered the price to 1.129 dollars on Saturday strengthened the bearish trend.
Crossing the 50-day moving average (MA) and the 100-day moving average (MA) also favors bears.
Daily close (UTC) above the resistance level of the falling channel (currently visible at 1.520) will signal the beginning of growth. In this case, BCH will be able to go back to the levels of 2000 USD (psychological level) and 2.110 USD (maximum 20 January).
On the other hand, daily closure (according to UTC) below $ 1.129 (at least on Saturdays) will lead to the emergence of lower highs and lows within the larger descending channel and move the price in the area of $ 1,000. Volatility in the area may lower the price to a minimum of February 6 (758 dollars).