After the big drop of the market capitalization and negative fundamentals, the price of Bitcoin Cash also had an aggressive movement and became one of the coins which are leading the drop. Looking at the chart, we can easily compare the current decrease of the price with the ones we could see the US Stocks having in the middle of the previous financial crisis.
Well, it's obviously that we have a bearish market as long as the current price it's almost 48% lower compared to it's last "peak" but the technical indicators are a bit in contradiction as it follows:
* We have 2 indicators which are showing that the price has reached the "oversold" area :
-The RSI is 27;
-Stochastic's crossover below the level of 20.
* And another 2 indicators which are shoring that there is still more room for the regress to continue:
-The price didn't reach the lower standard deviation of the Bollinger Band which can also be considered as a Support Level, meaning that it should't have any difficulty in going even lower;
-The MACD is still below the Signal, meaning that there is no reason to believe that the price will change it's direction very soon.
At this stage, if the price will follow the same pattern as in the interval 15th-18th of November, we can expect it to have some sideways movements before it will drop again, with the possible target price at 315$.
Well, it's obviously that we have a bearish market as long as the current price it's almost 48% lower compared to it's last "peak" but the technical indicators are a bit in contradiction as it follows:
* We have 2 indicators which are showing that the price has reached the "oversold" area :
-The RSI is 27;
-Stochastic's crossover below the level of 20.
* And another 2 indicators which are shoring that there is still more room for the regress to continue:
-The price didn't reach the lower standard deviation of the Bollinger Band which can also be considered as a Support Level, meaning that it should't have any difficulty in going even lower;
-The MACD is still below the Signal, meaning that there is no reason to believe that the price will change it's direction very soon.
At this stage, if the price will follow the same pattern as in the interval 15th-18th of November, we can expect it to have some sideways movements before it will drop again, with the possible target price at 315$.
Comment:
Support level 3 is still tested.
