Bitcoin Cash (BCH) is likely to be on the verge of a macro pattern reversal. The cryptocurrency has up to now delivered lateral worth motion in 2022 with resistance close to the $350 worth degree and help above $270.
BCH managed to interrupt above the help in the course of the March rally however its upside was short-lived. It has since then returned to its 3-month vary however zooming out reveals that its efficiency is likely to be due for one more main rally. Bitcoin Cash traded at $307 on the time of writing, which implies it is roughly 1/5 of its ATH.
BCH misplaced a big chunk of its worth from September 2021 to the tip of January 2022. Its sideways motion since February is an indication that a lot of the bearish momentum has been exhausted. It additionally signifies that wholesome accumulation has been happening close to the underside of its 3-month vary, underpinned by help and resistance.
Source: TradingView
Is BCH about to realize a bullish reversal?
BCH’s RSI highlights momentum weak spot whereas round 40 and failing to dip decrease. Its ADX indicator dropped under 20 within the final two weeks whereas the MFI exhibits wholesome accumulation regardless of the dip within the final week or so.
Source: TradingView
Some on-chain metrics help the accumulation statement. For instance, the share of whole provide held by whales registered a notable uptick from 23 April. This was additionally registered within the whale transaction rely. However, the accumulation hasn’t been registered in its worth motion but.
Source: Santiment
The on-chain observations and chart traits level in direction of a better likelihood for a bounceback from the present help. It may be an indication that BCH is prepared for some upside however this may solely occur if the bears give approach to the bulls.
The market is at present coping with elevated FUD and this will increase the chance of panic promoting. It merely means there is nonetheless a big threat of extra draw back even when the indications and on-chain indicators level in direction of a bullish restoration.
