The BCH coin price is consolidating in a small range in the daily time frame chart. This small range could provide a great opportunity for traders interested in BCH coin. Though the range itself is too small to offer any huge rewards, traders can wait patiently for the price to give a breakout on either side, which could provide a strong directional move in the BCH coin.
About the EMA’s, the BCH coin is trading below the critical EMA’s 50, 100, and 200, indicating a strong bearish trend formation. In addition, the chart also a death crossover of the 50 and 200 EMA, which should attract more sellers in BCH coins.
The RSI (BEARISH) value is 43, indicating a slightly bearish sentiment in the market.
BCH Coin Gives A Bearish Breakdown From An Ascending Trendline
The BCH coin price showed a small rally with the help of an ascending trendline in the 4hr time frame chart. However, on Thursday, price gave a breakdown from this trendline bringing new excitement among the short traders of the BCH coin. Though, this excitement was soon interrupted by the $488 support, which is the same support of the consolidating range mentioned above.
The MACD indicator (BEARISH) shows a bearish sentiment in the price as both the MACD and the signal line have given a bearish crossover and moved below the neutral zone(0.00).
Conclusion: From the technical perspective, the overall trend of the BCH coin is still bearish, and as mentioned above, the price is consolidating in a small range. However, seeing at the 4hr time frame chart, even after giving a breakdown from the ascending trendline, the price shows strong reversal signs from the $488 support with a strong bullish engulfing candle, and traders can grab this long opportunity for a small target till the top resistance, however for a bigger target, traders have to wait for a breakout from this consolidating range.