Although Bitcoin Cash dropped by 6% over the last 24 hours on the back of a broader market correction, the cryptocurrency maintained its channel between $620-$720. A look at BCH’s 4-hour chart showed a lack of volatility over the past week and the same was highlighted by the constricted nature of the Bollinger Bands. A rise in volatility could see BCH head back towards the demand zone between $460 and $556, where an extended sell-off would likely be countered.
A bullish outcome would require BCH to first break above its 100-SMA (blue). Such a development could allow for a hike towards $900.
The ADX pointed north from 13 and suggested that a strong trend was in the making. A hike above 25 would likely see volatility return to the Bitcoin Cash market.
After a period of consolidation that lasted from 24 May to 3 June, Filecoin initiated a breakout above the $77.3-resistance. However, gains seemed to be limited around the $95-level. Nevertheless, the cryptocurrency maintained gains of 21%, compared to yesterday. The next few sessions would provide more clarity of FIL’s current rally. A retest of the $85-support could allow FIL to bounce back and resume its upwards trajectory, whereas a breakdown could drag FIL back towards the $75-support and 20-SMA (red).
While the MACD line maintained its distance from the Signal line, the histogram noted weakening bullish momentum. A bearish crossover could see FIL dip further over the coming sessions. According to the OBV’s movement since 24 May, selling pressure has been maintained for the past week and while a wave of buying pressure could be incoming, the broader market correction could stall such an outcome.
MATIC was holding a channel of $1.75-$1.98 for the past few days, but a breakdown was seen later on its chart. Now down by 12% over the last 24 hours, MATIC headed towards a support line around $1.48-$1.51 – A region bolstered by the 200-SMA (green). Buyers could return at this point and counter selling pressure, but failing to do so would call into action support lines at $1.24 or even $0.96. Bearish momentum was evident on the Squeeze Momentum Indicator, but volatility was still low in the market for steeper losses.
The RSI nosedived to the oversold region and a bounceback can be expected moving forward.
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