Bitcoin Cash: Descending Channel Consolidation 4H (Apr.23)

X FORCE GLOBAL ANALYSIS:


In this analysis, we take a look at the technicals demonstrated in the chart of Bitcoin Cash (BCHABC)

Bullish Evidence

- Previously, we have seen parabolic breakouts for Bitcoin Cash after consolidation phases
- It could be said that we are currently consolidating within a downwards parallel trend
- This could turn out to be a textbook bullflag pattern
- We are still above the 0.236 Fibonacci Support
- The Relative Strength Index (RSI) shows higher lows

Bearish Evidence

- We are in a downtrend, creating techincal lower highs and lower lows
- We have broken down from the 0.5 Fibonacci resistance, the 0.382 Fibonacci resistance, and now possibly the 0.236 Fibonacci resistance
- The RSI also shows lower highs
- The Moving Average Convergence Divergence (MACD) demonstrates mixed signals and a lack of momentum to drive a bullish breakout

What We Believe

We believe that Bitcoin Cash will continue its bullish rally only given that it breaks through and closes above the descending parallel channel trend line resistance.

Trade Safe.