Bitcoin Cash price analysis: bearish pattern developing
Bitcoin Cash price analysis indicates that a move under the $213.00 level would be extremely negative for the BCH/USD pair. A complex head and shoulders pattern is currently unfolding across multiple time frames.
0'>Bitcoin Cash0'>Bitcoin Cash has been coming under heavy downside pressure over recent days, following a shift reversal from the $245.00 resistance level.
Bitcoin Cash price analysis shows that a complex head and shoulders pattern is currently developing across the daily time frame.
Bitcoin Cash medium-term price trend
Bitcoin Cash has been coming under pressure over recent days, with the fifth-largest cryptocurrency by market capitalisation trading down by nearly 10 per cent from its current monthly high.
The cryptocurrency also failed to rally after its scheduled halving on 9 April, despite initial optimism about the much-anticipated event.
Bitcoin Cash technical analysis shows that a complex head and shoulders pattern is developing on the daily time frame.
Complex head and shoulders patterns form numerous shoulders, as the pattern develops before usually breaking to the downside.
With this in mind, it is possible that further impulsive upside rallies could take place if bears fail to gain traction below the neckline of the pattern.
The $260.00 and $268.00 levels are seen as the strongest forms of technical resistance above the $245.00 level.
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Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis shows that the cryptocurrency is bullish over the short term while price trades below the $218.00 level.
The lower time frames are currently mimicking the higher time frames, and show that a head and shoulders pattern is developing.
Short-term rallies back towards the $245.00 level and potentially higher cannot be ruled out at this stage.
The size of the pattern indicates that the BCH/USD pair could decline towards the $130.00 level over the short-term.
As long as price trades below the $280.00 level the bearish pattern remains valid and dangerous on the lower time frames.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis continues to show that bearish head and shoulders patterns are playing out across the lower and higher time frames. Until neckline support is broken, counter rallies may occur.