BCH/USD Medium-term Trend: Bullish
Supply zones: $1000, $1050, $1100
Demand zones: $600, $550, $500
Bitcoin Cash is in bullish in the medium term outlook. The bears were strong as they broke the $739.02 in the demand area of the lower price range of yesterday analysis. The cryptocurrency was down to $697.92 in the demand area. This area is the 61.8 fib level.
The 61.8 and 50.0 are trend reversal zone. The bullish return may occur at this area. The formation of a pinball followed by a bullish candle is a pointer to the possible bulls return and change in trend.
The stochastic oscillator is in the oversold region at 21 percent and its signal points up which implies some upward momentum in price movement of the cryptocurrency may occur as the bulls gradually increase their momentum.
The structure of the cryptocurrency is that of head and shoulder pattern. As you can see the right shoulder is developing around the 61.8 fib level for a possible rise to 4784.00 in the supply area in the medium-term.
BCH/USD Short-term Trend: Bullish
The cryptoasset is in bullish trend in the short-term outlook. The bears' momentum and pressure broke the lower price range in the demand area at $739.02 of yesterday analysis and pushed price further down to $697.92.
The formation of a hammer, a reversal candle indicated the bulls are gradually retuning candle. The bullish momentum was strong so a breakout from the downward trendline occurred as you can see.
Price was pushed up to $738.06 in the supply area. A retest of the point of breakout i.e $619.0 in the demand area is expected before the journey up north could commence.
The stochastic oscillator is at 51 percent with signal pointing up. This suggests upward momentum in the cryptocurrency price movement as the bulls keep the pressure up in the short-term.
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