Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.<\/p>\n
Soon after its early April reversal from the $390-zone, Bitcoin Cash [BCH] has been on a steep southbound journey. The price has been hovering near the lower band of the Bollinger Bands (BB) for the most part ever since.<\/p>\n
A compelling close below the three-month trendline resistance (yellow, dashed) would extend the ongoing onslaught on the chart.<\/p>\n
Any close beyond the basis line of the BB could aid the buying efforts to invalidate bearish tendencies. At press time, Bitcoin Cash was trading at $109.6, down by 1.39% in the last 24 hours.<\/p>\n
The bears have made the most out of the aggravated fear sentiment by pulling BCH towards its fresher multi-yearly lows. The three-month trendline resistance has visibly kept the buying abilities under a leash.<\/p>\n
The altcoin registered a whopping 74.4% devaluation (from 5 April) as it fell towards its December 2018 lows a few days ago. BCH gravitated towards the 42-month low on 30 June.<\/p>\n
With BBs lower and upper bands looking to converge, the altcoin could extend into a squeeze phase in the coming days. Also, trading volumes declined during the recent up-channel recovery. This reading entailed a weak bullish move.<\/p>\n
Any close below the immediate resistance would pull BCH for a further downside towards the $101-level. Post this, the bullish revival efforts would likely face a barrier near the Point of Control (POC, red). An immediate recovery would probably be short-lived in the $120-zone.<\/p>\n
Over the last three days, the bearish RSI slammed into the 42-resistance. A sustained position below this level would aid the sellers in inflicting sell-offs on the chart.<\/p>\n
Furthermore, the OBV marked lower peaks over the past week and bearishly diverged with the price action. In fact, the DMI lines were yet to undertake a bullish crossover.<\/p>\n
In light of the confluence of hurdles near the POC, BCH could extend its sluggish phase in the coming days. The targets would remain the same as above.<\/p>\n
However, BCH shares a staggering 91% 30-day correlation with the king coin. Thus, keeping a watch on Bitcoins movement would be vital in making an accurate decision.<\/p>\n
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Here is the original post: Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice. Soon after its early April reversal from the $390-zone, Bitcoin Cash [BCH] has been on a steep southbound journey Continue reading
\nBitcoin Cash [BCH]: Is there a potential shorting opportunity on the cards - AMBCrypto News<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"