- Bitcoin kicks off the trading in the second month of 2019 in the red.
- The falling wedge pattern breakout awaits a catalyst.
Bitcoin Cash is still trending longer February 1, 2019. The downtrend started after the recovery in December lost momentum short of $220. The declines spilled into 2019 and have continued to dominate with a series of table episodes that result in further breakdown.
Bitcoin Cash is currently in the 6th spot in the market as shown by the data on CoinMarketCap. The assets market capitalization is back above $2 billion after sliding to lows around $1.9 billion on January 28 and January 29. Bitcoin Cash has an exchange trading volume of $239 million in the last 24 hours and has corrected lower 1% on the day.
Bitcoin Cash has been thinning within a falling wedge pattern on the 4-hour hour timeframe chart. Although the support at $110 was broken, the bulls have been able to protect the next demand zone at $105. BCH/USD recently formed a low at $105.13 before a slight bounce occurred towards $120 (resistance level). Lack of a catalyst has opened the door for declines that have tested the support at $110. Bitcoin Cash is dancing with $111.60 at press time while a bullish momentum continues to build.
I expect a breakout from the falling wedge pattern in the medium-term as the bullish momentum approaches $120. A break above the channel will ignite recoil towards $130 (key resistance level). In the medium-term the ultimate resistance at $140 and $160 supply zones. The technical levels for Bitcoin Cash are still positive while the fundamentals are positive and a steady correction to the upwards is imminent.
BCH/USD 4-hour chart
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