Bitcoin Cash (BCH) chart watchers must feel like they’re listening to Sublime, having ‘seen red’ for three consecutive days. Are we looking at a pre-fork buying opportunity?
Bitcoin Cash (BCH) is currently undergoing a strong sell-off after nearly five straight days of positive price action.
Driven largely by pre-fork hype, BCH has undergone what can only be construed as a ‘pump’ which has, in turn, helped the broader cryptocurrency market rally.
Said market is now correcting, however, and BCH is falling pretty hard.
4 Hour Chart
A look at the four-hour chart reveals a dire-looking decline which currently threatens to cascade down through historic support around $520.
MACD
The Moving Average Convergence Divergence (MACD) on the daily timeframe also suggests we may be looking at further declines, as the potential for a bearish cross of the blue line over the orange line looms large over the weekend.
That said, the simple fact that BCH is looking at a hardfork on Nov 15 renders the seriousness of a bearish cross relatively void in the short term.
After the fork, however, you can be all but assured a bearish cross will play out.
Bollinger Bands
The good ol’ Bollinger Bands aren’t looking very good at the moment — particularly on the four-hour timeframe.
Bitcoin Cash is breaking down through the bottom boundary of the bands, which is a seriously bearish indicator for the short-term.
Conclusion
As is often the case with any coin about to undergo a hardfork, Bitcoin Cash (BCH) has been clearly pumped. The question now is whether or not the coin is being dumped, or merely correcting before making another strong pre-fork move.
With the weekend upon us, it may be a good time to exercise patience and watch to see how it all plays out. If levels are still low on Monday, it may be worth considering making a trade — as all eyes in the cryptocurrency space are currently watching the latest chapter in the Bitcoin Cash drama unfold.
[Disclaimer: The author of this article holds Bitcoin (BTC) but does not hold any Bitcoin Cash (BCH). This is not financial advice, and should not be construed as such. It is for informational purposes only. BeInCrypto is not responsible for any financial decisions made by any readers. Trading in cryptocurrency is notoriously volatile and we recommend anyone interested consult with a trained financial professional.]