- Bitcoin Cash testing a vital trend line, which if broken could open the door to large selling.
- Price action since August 2017 has formed a large head and shoulder pattern for BCH/USD on the daily time frame.
The Bitcoin Cash has been attacked once again by the market bears, in-line with the heavy pressures seen across the board within the crypto market. There are several key areas being test for the major altcoins, which could trigger an even bigger sell-off.
BCH/USD has been dropping hard the past few sessions, losing over 30% within 7 days. Looking via the daily time frame, a large head and shoulders pattern can be seen, all part of the formation are seen, with the neckline currently being tested on the right shoulder. This trend line has been running since August 2017.
As mentioned above, the neckline is tracking at $815, a daily break and close below, could be very detrimental. A drop down to April lows seen at $602 may very well be on the cards, should the bears manage to breach the support. On the flipside, should sentiment reverse, a decent bounce could be seen, as there isn’t too much resistance until the $1050, 100DMA.
BCH/USD daily chart