Bitcoin Cash Flags Down After Trending on a Bullish Sentiment

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Bitcoin Cash (BCH) Price Analysis – April 12

After the early April heavy surge which led the bulls to $360, Bitcoin Cash followed a downward movement as price action remains within a channel. Still, a bearish formation is constructed for BCH market for now.

BCH-USD Market

Key Levels:
Resistance levels: $320, $360
Support levels: $240, $200

For the past one month, BCHUSD, on a medium-term outlook, was on a long squeeze before a sudden spike walked the bulls up to a new monthly high at $360. Today, Bitcoin Cash has posted a bearish channel formation as price slowly approaches close support at $240, testing the lower channel.

BCHUSD-4H-Chart-April-12

The actual scenario is quite significant on the 4-hours MACD. If the fall continues below $240 level, the key support to watch out for lies at $200 level and beyond. By then, the MACD should be trending extremely below the zero level.

At the same time, a bullish surge may throw a price at $320 and $360 resistance levels. Surpassing these levels could fuel the buyers for a new bull-run. As it stands now, the sellers are gaining control of BCH market.

BCH-BTC Market

Against BTC, Bitcoin Cash follows a bullish flag pattern after surging heavily to a high of 0.065 BTC level on April 2. The coin has since then been trading within a falling channel. The bigger picture is revealed on the current medium-term MACD indicator; now trending at the negative area.

BCHBTC-4H-Chart-April-12

Before the huge buy-off, BCH market was trading below 0.043 BTC level for the past two weeks; following a side-way trend. The scenario was reflected in the indicator.

Respecting the bearish channel, a surge in volatility is likely to play out. A positive move could propel price to the next resistance level at 0.06 BTC and above. In the opposite scenario, the next bear rally is capable of visiting a support level at 0.05 BTC and beyond.

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About AzeezMustaph

Azeez Mustapha is a technical analyst with many years trading experience in the stock exchange and crypto markets. He has broad experience in forex trading, coaching, and funds management.