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On a daily time scale, the price of the BCH coin is trading near the long term supply zone. - 2
The price of the BCH currency is now consolidating within a narrow range. - 3
The price of the BCH/BTC pair has increased by 1.25% during the last 24 hours to 0.0055.
The BCH coin price is trading at the supply zone on a daily time frame, as per the price action. The coin price faced the strong bearish pressure that prevailed in the market during the past week which led to a fall in the price of the BCH coin price as it showed a strong one sided rally.
BCH coin price forms a negative price structure
BCH coin price showed a one-sided bearish rally as it started falling from the supply zone. The BCH coin price is forming lower high and lower low formation on a daily time frame. The coin price can be seen rising if it is successfully able to break out of the supply zone. At present, the coin price is trading below the 50 and 100 Moving Averages. The recent bullish rally has resulted in the coin price breaking out of the 50 and 100 Moving Averages.
Moving upwards the coin price can be seen facing strong resistance from these MAs.. Currently, the coin price is trading at the middle of the Bollinger band indicator after failing to surpass the upper band. The range of the Bollinger Band indicator has narrowed indicating a strong move on the breakout side. Volumes have increased as the coin price bounced off the demand zone strongly. Investors should remain cautious as volatility has increased due to recent big moves.
The BCH coin price is consolidating inside a small range
RSI curve is trading at the price of 38.74 as the coin bounces off the demand zone. At present, the RSI curve has crossed the 20 SMA. The coin is forming higher low and higher high formation on a 4-hour time frame as the coin shows bullishness in the higher time frame. The BCH coin price can be seen moving if it sustains the recent gains and breaks the supply zone and if it does then the RSI curve can be seen moving even higher up supporting the trend, crossing the 50 halfway mark.
The BCH coin price has failed to sustain the supply showing a very brief fall from the supply zone. Before the current consolidation coin showed a strong bearish rally which led to breaking out of the super trend buy line. Earlier the super trend sell buy was acting as a strong demand zone. The recent breakout has resulted in the super trend indicator triggering a buy signal. Moving upwards the super trend buy line can be seen acting as strong support.
ADX has been continuously dipping as the coin price trades in a bearish trajectory on a weekly time frame. As of now, the coin price is trading at the important supply zone. The breakout of the supply zone can act as a strong demand zone in the coming days. At present, the coin price is trading in a small range on a 1-hour time frame, and if the same continues the coin price can be seen breaking on either side, triggering strong moves in the upcoming days. The ADX curve has dipped out of the 20 mark.
Conclusion: BCH coin price is in an uptrend on a daily time frame. While on a smaller time frame the coin is consolidating in a small range. The technical parameters are also seen supporting the trend as they turn bullish. Investors should wait for a confirmation of proper bounce back and then act accordingly.
Support: $121.00 and $119.00
Resistance: $148.00 and $135.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/03/06/bch-coin-price-analysis-coin-price-trades-indecisively/