Bitcoin Cash / USD Technical Analysis: Still Going Down
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- Bitcoin Cash remains bearish in the short-term but shows potential for a possible recovery
- Four-hour time frame shows the formation of a bullish pattern
- Medium-term bias for Bitcoin Cash is bearish with price still capped below its 50-day moving average
Bitcoin Cash / USD Short-term price analysis
In the short-term, Bitcoin Cash remains bearish with the pair enjoying only fairly limited upside during the most recent cryptocurrency market rally. However, some bullish signs are starting to emerge for the BCH / USD pair, with a large inverted head and shoulders pattern now visible on the four-hour time frame.
Technical indicators appear primed for a near-term move higher if Bitcoin Cash can break above the falling price channel it is currently trapped in on the mentioned time frame.
Pattern Watch
The bullish inverted head and shoulders pattern and falling price channel are the most dominant themes on the four-hour time frames, although traders should note that price has recently been making lower lows and higher highs.
BCH / USD H4 Chart (Source: TradingView)
Moving Average
The 200-period moving averages on the four-hour time frame highlights the key resistance area that bulls are currently struggling to break.
MACD Indicator
The MACD histogram is trending lower, while the signal line is crossing lower on the mentioned time frame.
Stochastic Indicator
The Stochastic indicator is showing significant scope for a strong recovery in the short-term, with the BCH / USD now appearing oversold on the four-hour time frame.
Bitcoin Cash / USD Medium-term price analysis
Bitcoin Cash remains bearish in the medium-term, with the BCH / USD pair largely range-bound despite the recent rally in the broader cryptocurrency market.
The pair’s 50-day moving average encapsulates the ongoing weakness in Bitcoin Cash, with medium-term bulls failing to mount a sustainable challenge above the 50-day since November last year.
Buyers also failed to rally the pair after a bullish breakout from a falling wedge pattern seen on the daily time frame.
Pattern Watch
Along with many other popular cryptocurrencies, traders should monitor the BCH / USD pair for signs that a longer-term price floor may be in the process of being established.
BCH / USD Daily Chart (Source: TradingView)
MACD Indicator
The MACD histogram is currently inconclusive as the pair has been in a period of price consolidation with limited trading ranges.
Stochastic Indicator
The Stochastic Indicator on the mentioned time frame is moving away from extreme overbought conditions and starting to turn lower, this may be a bearish development in the medium-term.
Conclusion
Bitcoin Cash is bearish in the short and medium-term and has shown very few signs that a sustainable counter move is likely to occur anytime soon.
The formation of the inverted head and shoulders pattern on the lower time frame is a positive short-term development, although it may be prudent to wait for a bullish breakout to occur before reassessing the pair’s outlook.
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