Bitcoin Cash (CRYPTO: BCH) attempted to break bullish on Thursday, but as Bitcoin (CRYPTO: BTC) encountered a group of sellers, which created a long top wick on the 9pm candle. On the other hand, Ethereum (CRYPTO: ETH) was up around 5%.
A key support and resistance level at $ 636.45 prevented Bitcoin Cash from erasing gains caused by the September 7 cryptocurrency flash crash, which coincided with El Salvador’s adoption of Bitcoin as a currency. legal. That could change, however, if the crypto can break away from its bullish flag pattern on the daily chart.
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The Bitcoin Cash chart: On September 28-29, Bitcoin created a bullish double-bottom pattern at the $ 472.55 level. The crypto reacted to the pattern and climbed around 34% higher over the next nine trading days.
The rise associated with an eight-day consolidation period settled Bitcoin Cash in a bullish flag pattern with the pole created between September 29 and October 7 and the flag between October 8 and Thursday. If Bitcoin Cash is able to break bullish with the flag on high volume, this will indicate that the pattern has been recognized.
The measured movement, determined by measuring the length of the pole and adding the percentage to the lowest price of the flag, indicates that the crypto may advance towards the $ 760 level in the future.
Bitcoin Cash is trading above the eight and 21-day Exponential Moving Averages (EMA), with an eight-day EMA trend above the 21-day, both of which are bullish indicators. However, the crypto is trading below the 200-day simple moving average, indicating that overall sentiment is bearish.
- The bulls want to see a big bullish volume come in and break Bitcoin Cash off the flag pattern and have momentum to push the crypto back above the $ 618 level. If Bitcoin Cash can regain the support level, it can take another run towards $ 636.45.
- The bears want to see a large bearish volume to drop Bitcoin Cash below a support level at $ 590, which could cause the crypto to lose EMA support. Below the levels there is support at 567 and the lower descending trendline of the flag pattern.