- Bitcoin cash trades over 5% lower as crypto sentiment remains weak.
- The bottom of the consolidation has been taken out and now the price seems to be targeting lower levels.
BCH/USD 30-minute chart
Bitcoin Cash has one of the most bearish intraday structures. The consolidation low of 252.33 has just been broken which could indicate more bearishness to come. On the higher timeframes, the trend is still very bearish. This means trying to catch an area to buy is very difficult rather like trying to catch a falling knife.
Looking at the chart below now, the consolidation period lasted some time. Now the lows have been taken out we need to wait to see if it is a false break or a bearish confirmation. What is interesting is the fact that the volume is still increasing as the price moves lower. This suggests the market is backing the move down. One thing the bears will need as confirmation is a strong close below the consolidation low.
Looking ahead now there is often a move back into the area to test if this is in fact a real more or a false breakout. It must be pointed out that 250.00 is a big psychological area and bid could be lying in wait at that zone. A break and close below 250.00 with volume confirmation is now key.