Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice
Bitcoin Cash has a price correlation of +0.99 to Bitcoin, meaning Bitcoin Cash’s movement in the charts pretty much followed Bitcoin’s movement. This could be bad news for Bitcoin Cash holders as Bitcoin faces solid overhead resistance. A step back above $220 would be necessary to suggest a shift towards the bulls for BCH, but this may not happen for a while.
BCH- 1-Day Chart
From June 2021 to December 2021, Bitcoin Cash ranged from $732 to $400. Since November 2021, Bitcoin Cash has been in a steady downtrend, falling below the longer-term lows of USD 400. In doing so, it established yet another range from $390 to $270, and in recent weeks the price has also slipped below the more recent lows of the range.
A series of Fibonacci extension levels (yellow) was plotted based on BCH’s decline from $391.2 to $267.3, and the 61.8% and 100% expansion levels of this decline are at $190.7 and $143 ,4. Just below the $190.7 level is a horizontal support level of $183.3, which has provided some confluence of support for the price in recent days.
However, the intense selling seemed to push BCH further down the charts, and $143 could be a take-profit target for short positions.
The RSI has been below the neutral 50 line since April 2022 and stood at 32 at the time of writing. Usually, a move above 40 on the RSI can be said to indicate a weakening bearish momentum, but it is not yet. happened for Bitcoin Cash. The Stochastic RSI climbed, but this need not signal a momentum reversal. Rather, a bearish crossover on the Stochastic RSI could be seen as a sign of strong bearishness.
The A/D indicator made gains during the months of February and March when BCH traded in the range of $270 to $390. At the time, this was thought to be an indication of bulls piling up. However, the downward trend seen in April and the sharp sell-off in May wiped out the notion of accumulation.
The market structure on the charts was clearly bearish. Bitcoin Cash will undoubtedly follow Bitcoin’s trend, and if Bitcoin is unable to move past the $30k and $32k levels in the coming weeks and instead dips back below the $28.5k level, new lows can also be expected for BCH.
This post Bitcoin Cash [BCH]: Could the March 2020 levels be invalidated in the coming weeks?
was published first on https://ambcrypto.com/bitcoin-cash-bch-could-march-2020-levels-be-invalidated-in-weeks-to-come/