Until a few weeks ago, Bitcoin Cash was rising above $ 700 on the charts. However, after a week of indecision, BCH fell below $ 540.
12-hour Bitcoin Cash price chart
After Bitcoin Cash fell to $ 460, the $ 540 level resisted demand from buyers. The long-term outlook for Bitcoin Cash continued to rise at press time, but the $ 460 and $ 540 levels were very significant from $ 502 in both directions for Bitcoin Cash when it was traded.
At the time of this writing, market entry is below optimal in terms of risk-reward. The market has not yet decided on the direction of its next move. However, the long-term trend continued its upward trend as a series of high lows were set. Repeated tests at the $ 540 level over the next few days will likely see an upward breakout.
It should be noted that the next few days will see some fluctuations in the market. A clear direction can occur after a break above $ 540 or after a break below $ 470.
Over the past two weeks, BCH tested the $ 540 mark and was rejected, but formed higher lows. The trading volume was falling during this time, indicating a rising triangle pattern that could see movement to $ 620, but only if the $ 540 was breached and the breach in question continued.
Technical indicators showed some bearish momentum and seller dominance behind BCH. While the RSI was moving below 50, the OBV was also in a downward trend since mid-February. The stochastic RSI is also correcting from the overbought territory.
While a breakout of over $ 540 is possible, a drop below $ 480 could result in BCH falling to $ 450.