As expected, the price of Bitcoin Cash (BCH) bounced within our previously-defined support range, subsequently opening up two solid green four-hour candles.
The bounce on the candlestick chart coincides with a bounce on the four-hour Relative Strength Index (RSI).
The big question now is: just how high will the price bounce?
To answer the above question, let’s zoom in and take a look at the hourly chart.
At the time of this writing, we can see that a red hourly candle has opened up. This candle will either perpetuate the upward stair-stepping pattern, retest support at 0.08 BTC or — worst case scenario — continue the downward trend.
A break above the upper boundary of this downward channel would signal price strength. Until then, it should be expected that the price of BCH will continue to channel downwards — until we see evidence to prove otherwise.
Buy the Rumors, Sell the News
Anytime a major cryptocurrency is set to undergo a hardfork, savvy and novice traders alike will get in on the action. However, the former almost always outsmarts the latter.
Smart money and skilled traders have already ‘bought the rumor,’ pumping the pre-fork price of Bitcoin Cash as a means of profiting from those wishing to buy the altcoin simply to receive free forked coins. Since the initial pump, sellers have been firmly in control, selling off each small relief rally on the way down.
Will Bitcoin Cash (BCH) experience another bonafide pump before the hardfork takes places on Nov 15? That’s not for us to say. Nobody has a crystal ball. That said, the chart is certainly worth keeping an eye on — but we recommend proceeding with extreme caution.
What do you think of the Bitcoin Cash (BCH) pre-fork price action? Looking for a good wallet to store your BCH? Let us know your thoughts in the comment below!
[Disclaimer: This is not financial advice, and should not be construed as such. BeInCrypto and the author are not responsible for any financial decisions, gains, or losses made by any readers. Trading in cryptocurrency is risky, and we advise consulting with a trained financial professional before making any trades in the volatile space.]