The cryptocurrency has now established a short-term bearish outlook as the crypto is now selling on a lower level than its two hundred-day MA. Across the 4-hour charts, the crypto is now forming a head and shoulders pattern with the lower bound supported around two hundred and fifty dollars ($250).
However, the crypto may surge higher if it break-through key resistances of three hundred and thirty dollars ($330) and three hundred and seventy dollars mark ($370). This may be possible as all technical indicators are now positive showing that the price may soon start rising again.
Crypto asset holders must note that the head and shoulders pattern has not yet ended and the price will fall further. Nonetheless, the Relative Strength Indicator (RSI) is now positive and showing momentum generated by the buyers. The moving average convergence/divergence (MACD) has also switched to bulls as the histogram now supports the buyers.
On the daily charts, the crypto remains bullish as it is still dealing above its 200-period MA. Although the overall trend is bullish the price incurred a sharp decline through a rising wedge pattern and support now lies just above two hundred and fifty-five dollars ($255).
The technical indicators across the charts remain negative and indicate that the price may continue to fall. Although if the price falls below the moving average heavy selling will be initiated and the price will be purged below two hundred dollars ($200) mark.
The RSI remains negative although it seems to be rising steadily, even so, the MACD remains negative and indicates further bears.
Bitcoin Cash price is currently residing on its 200-day moving average’s support. The line is key support for the crypto as a purge below may initiate heavy bulls and increase momentum for the sellers.
The crypto may have found momentarily support but the price may keep falling as both patterns have not reached their ends.