Last week, the price of Bitcoin Cash underwent huge appreciation. However, with markets trading flat and the original Bitcoin trading at its lowest volatility of 2018, Bitcoin Cash is also undergoing a tight consolidation this week. Bitcoin Cash exploded from around $450 to approximately $570 last week on news of Bitmain filing for its IPO. It has since retraced to close to $530 and has priced in doji candle yesterday with another forming today.
A doji candle represents indecision in the market and could be representative of a turning point in the markets where traders are unsure whether to be bullish or bearish. The MACD for Bitcoin Cash is diverging to the upside which is indicative of buyer momentum, but this could easily be the case of movement based on the large appreciation from last week. A more bullish sign is that the RSI is forming higher highs and higher lows which is a sign of an uptrend.
However, much still falls upon the market leader Bitcoin which represents 51% of the total cryptocurrency market cap. Bitcoin has been forming a descending triangle pattern since Janaury and is now approaching its end with many debating that either a bullish or a bearish breakout will take place. Traders of altcoins such as Bitcoin Cash should closely monitor Bitcoin when speculating on future price movements, especially as the descending triangle approaches its end.
- Bitcoin Cash consolidates after appreciation last week.
- RSI forms higher highs and higher lows which is indicative of an uptrend.
- Traders should monitor Bitcoin’s descending triangle which is appraoching its end for forecasts in the altcoin market.
Bitcoin Cash Settles After Bitmain IPO Explosion was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.