Bitcoin Cash Price Analysis For Wednesday, 16 December 2020
Taking the crypto market into consideration, Bitcoin Cash is presently going through a volatility phase with the digital asset declining in the past few days. Even though the Bitcoin Cash market has seen a sporadic rise over the past few weeks, some analysts feel that this phase is a consolidation phase for the asset. However, Bitcoin Cash has witnessed small rises as it is declining with the asset trading around $286 and it’s market cap moving to $5.33 billion.
One hour chart of Bitcoin Cash
Looking at the metrics of the one hour chart of Bitcoin Cash, one would notice that the digital asset is currently moving in a downward trajectory, forming a descending channel in the process. In the channel formed, Bitcoin Cash saw its highest price hit $297, with its lowest price coming at $286. Investors and traders who want to invest in an asset on the long term will be able to do that with Bitcoin Cash because of the investment opportunity that the asset has provided.
Investors and traders would have some solace in the fact that Bitcoin Cash is presently trying to make a turn around after it touched its latest support level. Another on-chain analysis that is impressing investors is Bitcoin Cash’s Relative Strength Index. Its RSI was at a time in equilibrium, but has now moved and is now making an upward surge.
This shows one thing, the buying pressure in the market is now more than the selling pressure, a major reason why its RSI left the equilibrium state. Another market indicator is the MACD which shows that the bearish momentum in the market is presently decreasing and the bars under the zero line keeps decreasing. This one move shows that Bitcoin Cash’s bullish momentum is gradually coming in and it is pushing it’s bearishness out.
Bitcoin Cash entered the market day at the $287 price mark and experienced a slight decline as it traded at $285.04 before making a massive surge to around $291.86. The digital assets current risk to reward rate is now around the 1.78 price mark.
Entry price: $287.50
Stop Loss: $285.04
Take Profit: 291.86
Risk To Reward: 1.78
Looking at the information above, traders would be able to enter a long position at $287. 5 because of the surge recorded by the digital asset in the past few weeks. Traders would be able to take the maximum profit at $291.96, a figure close to its resistance figure. This means that Bitcoin Cash could see a bullish momentum in the market in the short term.