Bitcoin Cash Price Key Highlights
- Bitcoin Cash also formed a double bottom reversal pattern and appears to be inching past the neckline.
- In that case, this could confirm that bulls are back in the game and ready to take price much higher from here.
- Technical indicators are still reflecting the presence of bearish pressure, though.
Bitcoin Cash is attempting to break past the neckline of its reversal pattern to signal that an uptrend is in the cards.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA on this time frame to indicate that the path of least resistance is to the downside. In other words, there’s a good chance that the downtrend might still be able to resume.
Then again, the gap between the moving averages has narrowed enough to suggest that a bullish crossover is imminent. Once that happens, more buyers could rush in and sustain the climb. The chart pattern spans around $650 to $800 so the resulting rally could be of the same height.
However, RSI is already hovering at overbought levels to indicate that buyers are feeling exhausted at this point. Similarly stochastic is indicating overbought conditions and could be ready to turn south, so Bitcoin Cash price might follow suit.
BCHUSD Chart from TradingView
Market Factors
Cryptocurrencies like Bitcoin Cash price drew strong support from news that institutional investors are looking into the space. Most notably, BlackRock reportedly formed a team to look into investments in the space, and confirmation early this week allowed rallies to resume.
This could continue to support investors’ optimistic views that a rebound could ensue in the industry after a rough second quarter. Traders are also noting the regulatory developments in South Korea as a reason to see more legitimacy and security in the industry.
