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Bitcoin Cash (BCH): Falling Wedge Pattern Breakdown Looms

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  • Bullish momentum is building up as technical indicators send positive signals.
  • Breaking the falling wedge support could see continued losses towards $100.

The volatile aspect of the cryptocurrency market is back after a week of stability. Bitcoin Cash ended last week trading above the support $120. However, like most assets in the market the digital asset tumbled past the several key support areas during the Asian trading hours today.

Bitcoin Cash is currently trading below both the 50-day Simple Moving Average (SMA) and the longer term 100-day SMA. After the support at $120 caved in, the declines progressed towards the next support target at $110. Moreover, the falling wedge pattern on the 4-hour chart is slowly approaching a breakdown and is likely to explore new lows in 2019. If the wedge support is broken, BCH/USD risks tumbling further towards $100 and could even test 2018 lows around $80.

Meanwhile, a weak bullish momentum is building up above $110 while BCH is exchanging at $11.63. The Moving Average Convergence Divergence (MACD) has been unable to cross into the positive region since the drop on January 10, 2019. If the indicator crosses into the positive levels, then Bitcoin Cash is likely to reverse the trend towards the psychological $140. Besides, the Relative Strength Index which had dipped to 19.14, is making headway from the oversold as the buyers return to battle the bears in a bid to reverse the trend.

BCH/USD 4-hour chart

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Posted-In: BitcoinCryptocurrency Earnings Fintech News Forex Global Markets

 

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