Bitcoin Cash was previously consolidating inside a symmetrical triangle visible on the 4-hour chart before breaking below support. This signals that price could be in for a slide that’s the same height as the chart formation.
The triangle spans $80 to $220, though, or $140 in size. The 100 SMA is above the longer-term 200 SMA to signal that the path of least resistance is to the upside, but the gap between the indicators has narrowed enough to show that a bearish crossover is imminent. Price is also moving below both dynamic inflection points to indicate that these would hold as resistance moving forward.
However, RSI has already made it to the oversold region to reflect exhaustion among sellers. Turning back up could encourage buyers to hop in, possibly for a retest of the broken triangle bottom or a move back inside. Stochastic also looks ready to turn higher without dipping to the oversold region, so bulls might be eager to charge again.
There have actually been a few positive developments for Bitcoin Cash lately, with…