Bitcoin Cash (BCH) – Trying to oppose the overwhelming bearish picturePosted on Thursday, November 24 2022 at 9:02 pm GMT+0000
Bitcoin Cash (BCH) price has produced an applaudable retaliation against the early November mudslide and shot higher to confront the Ichimoku cloud and the upper bar of the regression channel stretched from the July 29th top.
The Tenkan-sen line bounced aggressively and crossed above the flat Kijun-sen line indicating that the bulls are attempting to decisively claim control of the reins. Moreover, the oscillators are conveying an upside preference at the moment in the hard fork coin as the MACD is gaining steam beyond its signal line, having just nudged past its equilibrium mark and the momentum indicator has gone parabolic above zero.
Nevertheless, buyers will become more confident that the ascent will gain more legs following a close above the regression channel and the Ichimoku cloud. In such a scenario, those are expected to target the November 5th peak of 126.00. Even higher the spotlight will turn toward the September high of 138.78.
However, as Bitcoin Cash is challenging an important resistance zone and the IMI is already flashing overbought conditions, some downside moves cannot be ruled out at the moment.
In such a case, the Ichimoku directional lines seen around 110.00 and 106.50 will act as an initial safety net for the price. Should these lines prove fragile, the sellers will battle the middle-regression line, with the scope to stretch the decline toward the important November 10th bottom of 87.00. A drop below the latter and more importantly beneath the channel will nurture the medium-term bearish structure.
All in all, Bitcoin Cash buyers are attempting to oppose the overwhelmingly bearish picture. By securing a decisive step above the channel they will gain significant confidence. If the latter manages to mute the recent recovery, the sellers will then return with vengeance and press the price towards fresh lows.