Bitcoin Cash [BCH] Price Analysis: Short-term bearish market momentum threatens bulls’ position

Bitcoin Cash [BCH] has survived the bear’s attack as the market added another $3 billion to the market cap overnight. The Bitcoin [BTC] hardfork, despite falling two places down the global coin ladder in the past few weeks, has broken several resistance levels and is now priced at its highest point since early-January. However, this seems unlikely to sustain for long.

At press time, the coin is marginally up by 1.9 percent against the US dollar and is currently trading at $146.06. Bitcoin Cash has amassed a market cap of $2.57 billion, a considerable increase as it’s market cap was $2.16 billion last week.

In terms of exchange dominance, LBank takes the top spot with $29.2 million or 7.13 percent of the total BCH trade volume. Taking the next two spots are P2PB2B and BitForex, accounting for $27.26 million, or 6.66 percent and $23.95 million or 5.85 percent, respectively.

1-hour

The one-hour chart indicates that the coin has gone up significantly over the past week, with two successive uptrends clearly visible. The first uptrend is seen between $119.71 and $143.69 and is followed by a second one from $141.27 to $148.01. BCH has pegged back from $148.22 to $142.84.

Bitcoin Cash finds immediate support at $139.11, which the coin is now comfortably ahead of. The coin faces an immediate resistance at $148.72, which is fairly close to the coin’s current price.

The Bollinger Bands indicate that the coin’s volatility has declined over the past few days, with the Moving Average line showing a bearish swing, given the recent drop in the coin’s price.

The Fisher Transform line shows that the coin has switched from the bulls to the bears, as indicated by the recent crossover of the Fisher and Trigger lines.

The Relative Strength Index of the coin shows a decline in investor interest as the RSI has fallen from 62.95 at 1200 UTC on 20 February to the current valuation of 39.57.

1-day

The one-day chart shows a significant green switch following months of downtrends as the price dropped from $629.34 to $82.36. The coin then shot up from $85.94 to $194.64, following which it began to move downwards. However, the coin has since looked to push upwards.

Bitcoin Cash finds immediate support at $119.52, which is an increase from the previous level of $108.67. The coin has broken its immediate resistance level placed at $128.57 and is now trading more than $15 above the resistance level.

The Parabolic SAR indicates that the coin is trading with bullish momentum as the dotted lines are below the coin’s trend line.

The Chaikin Money Flow tool shows that investors are pumping money into the rising coin as the CMF line is above 0.

The Awesome Oscillator shows that the coin is trading with bullish momentum as the concluding AO bars are green.

Conclusion

The short-term indicators seem to suggest that the bulls have run their course and that a bearish crossover may be imminent. However, proponents would hope otherwise. In the long-run, BCH has managed to chalk up a prominent green candlestick, following weeks of stabilized movement. The long-term chart and its corresponding indicators suggest a relative bullish phase.