Bitcoin Cash is currently hovering below a decision point at $853.10 on Bitfinex, marked on the chart below with the gold, H/L Cross level. This level has repeatedly shown itself as a strong point of memory across the lifetime of the market. It’s very clear that price has been testing, breaking and returning to this level, and that there is a clear high and low division of price.
BCHUSD Daily Chart
From the lows in Aug. ’17, price rose to test the level but retreated again until the market was ready in Nov. to break through and flip to the high side. When it broke, it rallied to $2800, quickly followed by a retrace all the way back to the same breaking point at $853. $2000 up and back down again within 7 days. Just over a month later, after holding the level at 853 it rallied again, all the way to ~4100. You can see the rest for yourself, and how price continues to swing around that level. So, what’s next for BCH?
BCHUSD 4h Chart
In the following chart, I’ve changed the H/L Cross by replacing it with a channel (the H/L Cross level is still the center line).
For prices to break up through the channel, in the current situation, would probably require a good amount of volume, which is entirely possible. Currently the channel is holding price beneath it, and lower prices are very possible too. There could still be some carnage to come if the downtrend continues past the last wave low at $606.
If enough buy support arrives, prices can be carried higher. But at the moment, volume is still decreasing on the macro. So, even if price does move higher and above the channel, then any rallies are likely to be short-lived.
