- Summary:
- Bitcoin cash price has been consolidating this week. It now appears ready for breakout. We look at the top scenarios if this consolidation happens.
Bitcoin Cash price has been relatively mute in the past few days. The price has barely moved in the past 24 hours. This is in line with what other cryptocurrencies have performed. For example, according to Coin Market Cap, Bitcoin, Ethereum, and Tether have moved by less than 1% in the past 24 hours.
BCHUSD consolidation is possibly because of how uncorrelated cryptocurrencies are against stocks. This week, US indices have soared by more than 10% following actions by the Fed and US senators. As a result, most people who bought cryptocurrencies to protect themselves moved back to stocks.
Another thing. Big news on crypto have been rare this week. The biggest news I saw was that Ripple CEO had been sued for touting XRP while liquidating his holdings. Another big news was a bullish call on Bitcoin that came from Michael Novogratz.
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Bitcoin Cash Technical Analysis
Looking at the BCHUSD hourly chart, we see that the pair has been consolidating because of indecision between bulls and bears. As this is happening, the pair has formed a good-looking symmetrical triangle pattern. The triangle is now close to its tip, which suggests that a breakout is imminent. As it normally happens, it is difficult to predict the direction of a breakout.
Still, you should watch out for the support and resistance levels of 225 and 235 respectively. If the upside prevails, the next level to watch will be this week’s high of 246. On the other hand, if the downside prevails, the next level to focus on will be 215.