Bitcoin Cash Price Key Highlights
- Bitcoin Cash price recently broke above a long-term descending trend line to signal a reversal.
- Price also cleared a nearby area of interest, setting its sights on the next one around $700.
- Technical indicators, however, are reflecting slowing bullish momentum and a possible return in selling pressure.
Bitcoin Cash price could be due for more gains as buyers set their sights on the next area of interest, but technical indicators show otherwise.
Technical Indicators Signals
The 100 SMA is still below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. However, price has busted through these moving averages to show that they might hold as dynamic support from here.
Stochastic is moving up to show that there’s some bullish energy in play but this could fade as the oscillator is now testing the overbought region. Turning lower could bring more selling pressure to the mix. Similarly RSI looks ready to turn south as it also hovers around the overbought zone. A return in selling pressure could mean a dip back to the broken trend line and area of interest, which is also near the 200 SMA dynamic inflection point.
BCH/USD Chart from TradingView
Bitcoin Cash drew a strong boost from reports that Bitmain will file an IPO with the Hong Kong Stock Exchange. The firm reported impressive financial results and is known to be holding a lot of Bitcoin Cash, so it’s not surprising that investors are rushing.
To top it off, Google will be lifting its ban on ICO ads by October, likely spurring stronger interest in digital assets among the general public. However, the tech company will only be approving ads from regulated entities targeting audiences in the US and Japan.