Bitcoin Cash ‘lagging’ could recover soon only if …

Disclaimer: The findings in the following discussion are the sole opinions of the author and should not be considered investment advice.

Bitcoin It is up nearly 8% in recent days, from lows of $ 45.6k to $ 49.3k, before dipping slightly to trade at $ 48.9k at press time. Even so, Bitcoin is likely to rise to $ 51k- $ 52k again and could move the broader crypto market north to its side.

On the contrary, Bitcoin cash it has gained only 4% during that period. Simply put, Bitcoin Cash may be lagging behind.

Bitcoin Cash 1 hour chart

Price action for the past two weeks ranged from the $ 490 band (red box) to the $ 415 band (cyan). Price has tested this area for demand multiple times in the past week and has bounced after each retest. The most recent bounce struggled to push BCH above $ 435, and the $ 450 level acted as resistance as well.

When charting a range between $ 421 and $ 481, the middle of the range (dotted white) was $ 451, representing significant resistance. Aside from this, the entire region from $ 430- $ 450 seemed to be a major upper time frame area, which means there is likely plenty of liquidity for the bulls to chew on before moving higher.

Trend line resistance (white) was drawn from the beginning of November and remained undefeated, adding to the upside resistance of BCH.

Low trading volume, combined with relatively strong buying in the $ 420 area, indicated a possible build-up phase.

Fundamental reason

Fountain: BCH / USDT in TradingView

The OBV has continued to rise in recent days, which means that buyers have been strong in the market. This was also an encouraging sign for the bulls. The RSI was unable to climb above 67.7, although it remained above neutral 50 to highlight the recent bullish momentum.

On the price chart, the fixed-range volume profile was drawn from December 6 when the price tested the lows at $ 420.

One upside for the bulls to take is that the price was above the Control Point (red) at $ 436, although the FRVP also indicated strong resistance around $ 450.

conclusion

The dead cat bounced earlier this month after the strong sell-off saw BCH establish a range between $ 480 and $ 420. Since then, the price has touched the lows of the range in search of demand several times and has bounced each time. . Buying pressure has been mounting, even as BCH faced strong resistance at $ 430- $ 450 and another level at $ 470. Trading volume has been low, with market participants sidelined and buying the new $ tests. 420.

In conclusion, BCH has been in a build-up phase for the past two weeks, and climbing above $ 450 will likely see it hit the $ 490 zone.

This is a machine translation of our English version.

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Bitcoin Cash ‘lagging’ could recover soon only if …

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