Bitcoin Cash: These support levels could make or break BCH’s trajectory
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Bitcoin Cash (BCH) sellers quickly pulled off a notable plummet from the 11-month $719 resistance. The bearish rally then halted at its long-term liquidity range, near its Point of Control (POC, red).
Given the current structure below its EMA ribbons, the sellers visibly steered the near-term trend. So, the upper railing of the pitchfork could continue to put substantial bullish recovery attempts on a leash. At press time, BCH was trading at $307.2.
Source: TradingView, BCH/USDT
Over the last few months, the altcoin’s movement has come under much selling pressure. A recovery from late January lows identified the reversal of the bear cycle. In this bullish endeavor, the buyers provoked a double-bottom pattern on the daily timeframe. Thus, BCH rushed to test the upper trendline of the current up-channel (yellow).
Soon after a short-lived revival above its EMA ribbons, BCH succumbed to its bearish tendencies. The subsequent plunge below its ribbons compressed its movement between the 20 EMA and the POC.
With a rising gap between the EMA ribbons, the sellers visibly exhibited their near-term dominance. They further gained thrust after the evening star setup that pulled BCH towards the median of the Pitchfork.
A pull below the current pattern could lead the alt to test the POC in the coming sessions. In this case, maintaining the $275-support would be critical to prevent a major fallout. A close above the upper fence of the Pitchfork is what the bulls need to alter the current selling tendencies.
Source: TradingView, BCH/USDT
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