Bitcoin Cash Technical Analysis: Bearish Chart Pattern Formation
Conclusion for today’s Bitcoin Cash Analysis: Price closing below ~303.31 implies further downside in Bitcoin Cash.
Bitcoin cash technical analysis for today examines the cryptocurrency on a Daily timeframe using a log scale. Price action from July 20, 2018 till current date is presented with the period including the previous downtrend in Bitcoin Cash that terminated on December 16, 2018.
A bullish trendline is used to highlight the current uptrend since December of 2018, as well as the 200 Day moving average which lies just below the trendline. Price action from April 04, 2019 to current date appears to be working on the formation of a complex, Head and shoulders top pattern.
The aforementioned pattern is ideally bearish and therefore implies lower prices in Bitcoin Cash. A major requirement however is that price must close below the neckline of the pattern for chart pattern confirmation. July 15 2019 price low of 251.23 is sufficient as confirmation as it lies closest to the neckline.
The width of the pattern is indicated on the chart and can be used for price projection (upon confirmation) to obtain the minimum estimate for the bearish move.
Less conservative strategies that involve selling prior to a break of the neckline involves initiating a short trade as soon as the 303.31 price level gives way to the downside.
A break below the bullish trendline and the 200 Day moving average (both of which provide support) do increase the chances of price following through to the downside.
Bitcoin cash technical analysis for today examines the cryptocurrency on a Daily timeframe using a log scale. Price action from July 20, 2018 till current date is presented with the period including the previous downtrend in Bitcoin Cash that terminated on December 16, 2018.
A bullish trendline is used to highlight the current uptrend since December of 2018, as well as the 200 Day moving average which lies just below the trendline. Price action from April 04, 2019 to current date appears to be working on the formation of a complex, Head and shoulders top pattern.
The aforementioned pattern is ideally bearish and therefore implies lower prices in Bitcoin Cash. A major requirement however is that price must close below the neckline of the pattern for chart pattern confirmation. July 15 2019 price low of 251.23 is sufficient as confirmation as it lies closest to the neckline.
The width of the pattern is indicated on the chart and can be used for price projection (upon confirmation) to obtain the minimum estimate for the bearish move.
Less conservative strategies that involve selling prior to a break of the neckline involves initiating a short trade as soon as the 303.31 price level gives way to the downside.
A break below the bullish trendline and the 200 Day moving average (both of which provide support) do increase the chances of price following through to the downside.
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