Bitcoin Cash price analysis: awaiting $75.00 directional move
Bitcoin Cash price analysis shows that the cryptocurrency is lacking a meaningful price trend at the moment. Lower time frame analysis highlights that a bearish head and shoulders pattern has formed.
Bitcoin Cash is suffering from a lack of volatility in the near term, with the pair’s ATR reading at its lowest level since early January this year.
Bitcoin Cash price analysis indicates that a $75.00 directional move may occur once the price moves away from range bound trading conditions.
Bitcoin Cash medium-term price trend
The overall trend for Bitcoin Cash remains uncertain, as the cryptocurrency continues to range trade between the $205.00 and $280.00 levels.
Bitcoin Cash technical analysis shows that a $75.00 directional move could occur once the price breaks from a horizontal price channel.
Low volatility and range trading conditions are likely to persist while the price remains inside the mentioned price channel.
A breakout above the $280.00 level should increase volatility and provoke a technical rally towards the $355.00 level.
Looking at the downside potential for the BCH/USD pair, a breakout below $205.00 could cause heavy technical selling towards the $130.00 level.
It is also noteworthy that the daily time frame shows that the BCH/USD pair’s Average True Range is at its lowest level since early January this year.
Bitcoin Cash short-term price trend
Bitcoin Cash technical analysis shows that the cryptocurrency is bearish over the short term, while the price trades below the $242.00 level.
The one-hour time frame shows that a small head-and-shoulders pattern has recently formed.
The bearish pattern indicates that if the price moves below the neckline of the pattern, around the $230.00 level, then a $25.00 downside move may occur.
Should buyers be able to move the price above the $255.00 level and invalidate the pattern, then a rally back towards the $280.00 level may occur.
Bitcoin Cash technical summary
Bitcoin Cash technical analysis indicates that a $75.00 directional move in the cryptocurrency could occur once the $205.00 to $280.00 price range is breached.