Today we will look at the Bitcoin Cash, which has broken through the structure that has been forming for several days and mainly through close resistance. However, yesterday in return was not exactly friendly to BCH. The situation on altcoins is still quite indecisive.
Current situation at 1D BCH / USD
As mentioned, Bitcoin Cash broke through the small bull flag, which formed in the range of S/R levels 630 – 540 USD. Among other things, the curve of the 100-day moving average certainly helped. The support itself was nearby, which also had to help. There was also a high volume node of the volume profile, so we clearly had a strong support confluence.
The reflection from this confluence was very reliable. It was modest, but the main thing was that the S/R level of 630 USD fell. Currently, the BCH rate is consolidating on the surface, but it has a big hook. Yesterday’s candle closed like Doji, or if you want as Inverted hammer. I’d say naming doesn’t matter so much. It is simply a bear candle and unequivocally rejected in an early attempt to bounce back to higher price levels.
Fortunately, the candle does not have large volumes. In addition, the breakthrough candle clearly has larger volumes than all recent candles. That is why I would not be so afraid of Saturday’s rejection so far. As long as the exchange rate consolidates, everything is fine. And in that case, it is more rational to count on an early reflection.
In the opposite situation, I would perceive it as a significant problem. So the current support must last. If the price gets back close to $ 540, there’s something wrong. On the other hand, Bitcoin Cash can take longer to go up. We broke the price resistance, but high volume node the volume profile is directly above us.
Indicators
The RSI indicator has not yet risen above 60 points. While on the MACD histogram there is a bearish divergence.
