Yesterday, BeInCrypto took a look at the current pre-fork price action present on the Bitcoin Cash (BCH) chart in an attempt to find out whether or not we’re looking at a prime buying opportunity.
Our recommendation was to wait and see how things look over the weekend.
Well, it’s Saturday evening — the first day of the glorious weekend — so let’s take a look at how things are playing out.
At the time of this writing, Bitcoin Cash (BCH) is trading at $558.81 USD per coin, up 2.08 percent over the last 24 hours.
4 Hour Chart
Taking a look at the 4-hour chart, we can see that Bitcoin Cash (BCH) has bounced and produced three consecutive green candles. This should probably not be taken as a sign of strength going into Sunday, as the third candle suggests the small relief rally is running out of steam.
If we switch to the Heikin Ashi candles, we can see a possible pattern of two green candles followed by cascading red developing.
The price of BCH could easily topple over and cascade down towards the big-even 0.08 BTC support level — the range we would be most interested in making a move.
The Relative Strength Index (RSI) for the four-hour chart is also hanging out in the middle, suggesting there is still plenty of room to the downside. Preferably, we’d like to see the RSI enter oversold territory before making entering a pre-fork trading position.
Daily Chart
Taking a look at the daily chart, one thing immediately stands out: the price of BCH bounced perfectly off the 100-daily moving average. However, we don’t expect it to hold and would prefer to take out a position at the 50-daily moving average. Admittedly, that may be too much to ask. Should BCH show price-strength confirmation by holding the 100-daily moving average and pushing higher, it may be worth entering a pre-fork position.
What do you think about the pre-fork price action of Bitcoin Cash (BCH)? Let us know your thoughts and trading strategy in the comments below!
[Disclaimer: This article is not financial advice. BeInCrypto and the author are not responsible for any financial decisions made by any readers. Trading in cryptocurrency is risky and we advise consulting with a trained financial professional.]
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Dani P
Dani Polo is the co-founder of BeInCrypto, one of the most-read crypto media platforms globally. With a background in fintech and digital strategy, he has led its global expansion and business innovation. Recognized with multiple international awards, Dani combines technology, content, and automation to scale audiences in emerging financial markets.
Dani Polo is the co-founder of BeInCrypto, one of the most-read crypto media platforms globally. With a background in fintech and digital strategy, he has led its global expansion and business innovation. Recognized with multiple international awards, Dani combines technology, content, and automation to scale audiences in emerging financial markets.
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