In the cryptocurrency world, Bitcoin Cash news attracts attention from time to time. An important warning for Altcoin is now on the agenda. Let’s look at the details together.
Is strong selling coming for altcoin Bitcoin Cash?
The price of altcoin Bitcoin Cash (BCH) was rejected by a strong resistance zone. On the other hand, it is currently trading in a bearish formation. It is likely to fall in the near future. Bitcoin Cash (BCH) price reached $330 in late June 2023. Therefore, it has declined since reaching its highest level of the year. During this time, the price dropped nearly 50% to $155-$165 before recovering. Accordingly, BCH fell to the previous resistance zone.
It is noteworthy that the previous long-term resistance was confirmed as support. Accordingly, it shows that the long-term trend may have shifted to an uptrend. The weekly RSI (Relative Strength Index) supports this possibility by remaining above the 50 level since the correction occurred. However, Bitcoin Cash price is currently facing a very strong resistance zone at $265, formed by horizontal resistance and the 0.618 Fibonacci retracement level. Last week it was rejected by this zone with a pinbar candle with a long upper wick (red arrow). This indicates strong selling pressure at higher levels.
Rising parallel channel attracts attention
The daily chart shows that the altcoin Bitcoin Cash price has been trading within an ascending parallel channel since it bounced from the previous resistance zone at $155-165 on August 17. This is a bearish pattern that leads to breakouts in most cases. On the other hand, when we look at Kriptokoin.com, we see that the daily RSI creates a downward trend. Accordingly, this supports the possibility of a breakout as it is sloping downwards.
In fact, the price falling below the middle line of the channel and its subsequent rejection (red arrow) also supports this possibility. Therefore, it is possible for the altcoin Bitcoin Cash price to fall below the channel. Therefore, the price is likely to decline towards the nearest horizontal resistance at $207 or even $185.
What are the possible scenarios?
The most likely scenario shows that altcoin Bitcoin Cash price will be rejected by the $265 resistance zone. This situation means a decline for the altcoin in the near future. The immediate target is at $207. Also, the price has the potential to reach $185.
However, this could be a correction within the overall uptrend, as the long-term trend has switched to an uptrend. This situation inevitably makes altcoin Bitcoin Cash BCH investors uneasy.