Bitcoin cash (BCH) faces rejection for important resistance. The fact that Bitcoin was also unable to advance, as it was stopped at a resistance of around $ 61,000, also helped. As far as Bitcoin cash is concerned, we have a promising structure here that is worth watching. In fact, it seems to me that the macro view of the market is quite good. But we must not fall too deep. Otherwise the structure will be disrupted.
Current situation at 1D BCH / USD
So, as mentioned in the introduction, Bitcoin cash could not pass through S/R level 630 USD. It was a strong rejection because the daylight closed in the form of a Doji. It was a pretty strong resistance. They’re both here moving averages (MA 100 a 200) a high volume node volume profile. The set of those factors was not negligible resistance confluence. The market reaction was quick and the exchange rate gradually fell back all night.
Soon we will be again at the S / R level of 540 USD, which we have managed to defend many times before. Here, too, she is very strong supportní confluence. It is made up point of control volume profile, support trend and of course price support. Among other things, a small structure is formed in the graph, which seems to be rather corrective. That is why I am rather positive about future developments. In addition, the market structure of previous months is, in my view, more bullish.
But the exchange rate must not fall below the $ 540. From a technical point of view, this would be such a problem that a panic wash would certainly occur for Bitcoin cash. So it is crucial that shoppers manage to defend the level.
Indicators
So far, the daily RSI only confirms that this is a correction structure. It is important for us that the value of the indicator does not fall below 30 points. According to the MACD, the negative momentum has weakened quite a bit, but that may soon change.
In conclusion
Bitcoin cash still seems to have a chance to continue growing. However, the price should definitely not fall below $ 540, where support confluence is key. Quite logically, it depends on Bitcoin. But if nothing changes dramatically, everything should be more positive. Even so, it is good to be careful and reckon with negative contingencies.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as an educational text on how to approach the market mentally. Before you invest, do your own research and analysis, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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