- The BCH coin price is trading near the demand zone on a daily time frame, after the strong bearish rally in the past week.
- The coin price is forming a descending triangle pattern on a daily time frame.
- The pair of BCH/BTC is trading at the price level of 0.00650 with an increase of 2.92% in the past 24 hours.
The BCH coin price as per the price action is trading at the demand zone, following the overall cryptocurrency market trend on a daily time frame. The recent fall in the global market has led to a bearish rally in the BCH coin price. The coin price is trading at the long-term demand zone of $100.50 as it continuously faces rejection from the downward-sloping white trendline.
The coin price is forming lower low and lower high formation on a daily time frame. A breakdown of the long-term demand zone can lead to a strong bearish trend for the upcoming months. At present, the BCH coin price is trading below the 50 and 100 Moving Averages. The recent breakdown in the price of BCH coin price has resulted in the breakdown of the 50 and 100 MAs.
Moving upwards the coin price can be seen facing strong bearish pressure from these MAs. The coin price is currently trading at the middle of the Bollinger band indicator after it starts conBCHidating. The coin price fails to surpass the upper band of the Bollinger band indicator. Volumes have been normal as the coin conBCHidates. Investors should wait for a proper signal of breakout on either side of consolidation and then act accordingly.
The BCH coin price is forming a descending triangle pattern on a daily time frame
Relative Strength Index: The coin price is consolidating at the moment, with the RSI curve trading at 46.38. The RSI curve has not yet surpassed the halfway mark of 50. The RSI curve may be observed passing the 50 midpoint once the coin price has rebounded from the demand zone. Despite the fact that the coin price has developed a negative chart pattern, it is unlikely to occur. A negative trend will emerge if the descending triangle formation collapses, which might cause the RSI to decline and support the trend.
Average Directional Movement Index: ADX curve is moving downwards since the coin price fell to the demand zone. Since then the ADX curve has not turned upwards. Currently, the ADX curve has slipped below the 30 mark as it trades at 27.19. As of now, the ADX curve has turned sideways indicating a possible halt in the price movement and change in price structure after the breakout.
Supertrend: After suffering severe negative pressure from the downward-sloping white supply zone, the BCH coin price plummeted to the demand zone. The coin fell below the supply zone, breaking the super trend buy line and triggering the sell signal. The BCH coin is currently trading below the super trend sell signal line. In the future, this line could serve as a reliable supply zone. To turn bullish, the coin price must break through the super trend sell line with a strong bullish candlestick pattern.
Conclusion: The BCH coin price is trading in a narrow range on a daily basis, forming a descending triangle pattern based on price action. The technical metrics indicate that the coin price is bearish. Concerning the overall cryptocurrency market decline, the BCH coin price took a beating as it fell to the demand zone. Before taking any action, an investor should exercise caution and wait for a clear trend.
Support $100 and $95
Resistance: $125 and $130