Bitcoin cash is on the rise amid rising volumes, but is still within a bearish falling-channel pattern for now, the price charts indicate.
As of writing, the world’s fourth-largest cryptocurrency by market capitalization is changing hands at $1,281, having appreciated by over 8 percent in the last 24 hours, as per CoinMarketCap data.
With trading volumes up by 38 percent, the recovery from the Sunday’s low of $1,143 looks sustainable. However, BCH is still down 22 percent from its Feb. 18 high of $1,641, and it’s too early to say whether the cryptocurrency has resumed the uptrend from the Feb. 6 low of $764.
Price chart analysis also indicates BCH is stuck in a bearish falling-channel pattern characterized by lower highs and lower lows.
The above chart (prices as per Bitfinex) shows:
The recovery from the Feb. 6 low of $758 ran into offers around the head-and-shoulders neckline resistance (former support) 10 days ago. The subsequent sell-off to $1,129 on Saturday reinforced the bearish view.
The 50-day moving average (MA) and 100-day MA bearish crossover (short-term average cuts long-term average from above) also favors the bears.
A daily close (as per UTC) above the falling channel resistance (currently seen at $1,520) would signal the rally from the Feb. 6 low has resumed. BCH could then revisit $2,000 (psychological resistance) and $2,110 (Jan. 20 high).
On the downside, a daily close (as per UTC) below $1,129 (Saturday’s low) would establish lower highs and lower lows pattern inside a bigger falling channel, and would shift attention to $1,000. A violation there would expose the Feb. 6 low of $758.
Candlesticks image via Shutterstock