- Bitcoin Cash is holding up better than the rest of the cryptosphere
- Price is heading to a major support level
- Chart structure looks more positive than other major coins
Looking at the price action in Bitcoin Cash it seems that the structure looks slightly different compared to its major crypto counterparts. All of the other majors (BTC/USD, ETH/USD, XRP/USD) look like they are set to break toward new wave lows. The BCH/USD pair just looks like its in a retracement phase from a trend of higher highs and higher lows. There is also one other major factor in this hypothesis and that is the key support level of 325.00 that is just in sight. Today Bitcoin Cash trades at 336.27 and as pointed out on the 4-hour chart above there has been six key tests of the price level since early June marked by the circles.
The indicators are telling us a conflicting story at the moment. The stochastic moving averages are crossing in a bearish fashion and leaving the overbought zone, while, the MACD histogram is still in bullish territory.This often happens when markets retrace and it is important to look for the bullish stochastic cross when the trend is moving higher. In terms of the volume it seems we may be getting a great clue here. In recent rallies the volume indicator is showing a higher reading than when the market sells off. This is a clear indicator that the bulls have control, That is not to say this cannot change, so watch the volume as we get nearer to the 325.00 support level.