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Over the past four weeks, Bitcoin Cash has been walking on the thin line of the Golden Ratio support level. If this line breaks under bearish pressure, we could see the price dip significantly.
Last week, Bitcoin Cash experienced a substantial devaluation of around 23%. This decline occurred after BCH, in a bearish turn, broke through the Golden Ratio support set near the $112 mark, causing its price to contract considerably.
So far, BCH price has managed to rebound from the support level extending roughly between $87 and $97, exhibiting a bullish bounce. Despite this rebound, the Moving Average Convergence Divergence (MACD) has been indicating a bearish trend for several weeks, demonstrated by its continued downward trajectory.
Additionally, a bearish crossover has occurred in the MACD lines. Meanwhile, the Relative Strength Index (RSI) remains neutral, providing no bullish or bearish indication at this time.
Latest Bitcoin Cash Testing Support
On the monthly chart, the MACD continues to show an upward trend, with values gradually increasing. There is also potential for a bullish crossover of the MACD lines in the near future.
Bitcoin Cash BCH/USDT price chart. Source: commercial view
However, it is important to note that BCH is currently resting on its final support level. If this level were to break, the downside potential could be substantial, close to zero.
Daily Chart Death Cross Signals Bearish Tone
The daily chart continues to display a death cross pattern, reaffirming the prevailing downtrend in the short to medium term.
Bitcoin Cash BCH/USDT price chart. Source: commercial view
Further, the MACD gradually drops in a bearish fashion, while the MACD lines remain crossed on the downside. Additionally, the Relative Strength Index (RSI) is gradually approaching the oversold regions.
4H chart Death cross: bearish signal intensifies
The short-term downtrend is further confirmed by the presence of a death cross on the 4-hour chart. However, it should be noted that the MACD indicator is showing a clear bullish signal.
The MACD histogram shows an upward trend in a bullish manner, and the MACD lines have crossed in a bullish manner.
Bitcoin Cash BCH/USDT price chart. Source: commercial view
Moreover, Bitcoin Cash (BCH) has seen a robust recovery in the support zone, ranging from around $97 to $113, leading to a noticeable increase of around 15.3% in its price.
If BCH maintains its upward momentum, it will encounter notable Fibonacci resistance levels at around $114.8 and around $130.
BCH shows a short-term bounce against BTC
Against BTC, the price of Bitcoin Cash (BCH) remains caught in a bearish trajectory. Additionally, the MACD has been consistently declining in a bearish fashion over the past few months, which could lead to a bearish crossover of the MACD lines in the near future.
Bitcoin Cash BCH/BTC price chart. Source: commercial view
The Relative Strength Index (RSI) is currently indicating oversold conditions. However, despite these indicators, BCH price is currently showing signs of a bullish rebound, establishing support along a trendline.
The next significant Fib resistances are then around 0.005 BTC and around 0.006 BTC.
Disclaimer
In accordance with Project Trust guidelines, this price analysis article is provided for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reports, but market conditions are subject to change without notice. Always do your own research and consult a professional before making financial decisions.
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