Some thoughts on Bitcoin Cash's current price action.
Currently, Bitcoin Cash is testing support around $1000. A recent sell-off has brought the coin to well below the 0.618 retracement. RSI confirms that BCH is oversold, and several indicators show that Bitcoin Cash is ready for some price recovery.
On smaller timeframes, Bitcoin Cash is trending inside a descending channel. As BCH attempts to recover its losses, it seems likely that a bear flag could form. With enough momentum, price could retest resistance at the 21 MA and could even test larger resistance around $1100 (around the 50MA).
The MACD below also indicates that price is preparing to recover from its current levels.
A price retracement to the 0.786 fib level (~$860) would complete a long-term Inverse Head and Shoulders pattern, and would provide a strong reversal point for bulls to enter the market.
What are your thoughts? Please share below!
