Bitcoin Cash‘s price movement since the beginning of the month has been stuck between the $290 – $320 price level. While the coin did manage to stay above the $300-level for a while, the past week saw BCH slump even further on the charts.
At the time of writing, Bitcoin Cash was being traded at $295 with a market cap of $5.4 billion after having lost out to Chainlink on CoinMarketCap’s charts. Over the past 24-hours, BCH’s price was noting a minor hike of 0.13 percent, while registering a 24-hour trading volume of $1.9 billion.
Bitcoin Cash 4-hour chart
Source: BCH/USD, TradingView
As per Bitcoin Cash’s 4-hour chart, the crypto’s price failed to breach its resistance at $307 over the past week, while also noting a minor correction. In fact, over the same timeframe, BCH has been stuck between the resistance at $307 and its press time trading price of $295. At the time, Bitcoin Cash was very close to testing its support at $291. However, since the start of the month, Bitcoin Cash’s price action has stayed within a descending channel formation and over the coming week, the price action is likely to remain within the formation and head towards the next support point at $280.
At the time of writing, there was also the possibility that if bullish pressure were to kick in, the coin may see an early break out of the formation. In the case of a descending channel, the price normally tends to break out upwards, a development that would mean that BCH may head towards its immediate resistance at $307.
Source: BCH/USD, TradingView
The MACD indicator, at press time, showed bullish sentiment after it underwent a bullish crossover 48 hours ago. Further, the RSI indicator was very close to the neutral zone and was moving towards the oversold zone on the charts.
Source: CoinMetrics
Over the past year, Bitcoin Cash’s correlation with Bitcoin has continued to remain strong, as has been the case for many of the altcoins in the market. At press time, BCH’s correlation with the world’s largest cryptocurrency was 0.84.
Conclusion
Bitcoin Cash’s price action is likely to stay within the descending channel formation in the coming weeks and it may head towards the support level at $280, if the present support fails to hold. However, if a breakout were to take place, the coin may end up heading towards the resistance at $307.
