BCH flashes sell signals in 4-hour and 12-hour charts

  • The parabolic SAR has reversed from bullish to bearish on the 4-hour chart.
  • The IOMAP shows that the price is currently on a healthy retaining wall.

A sell mark was blinking on the TD sequence indicator on the BCH 4-hour chart. After the signal flashed, the price moved horizontally over the next six sessions.

bchusd 4 hour chart

BCH needs to break below the uptrend line and the SMA 200 (USD 224.25) to validate this sell-signal and reinforce the downtrend. The parabolic SAR and MACD are both bearish, which shows that ideally the price should fall below this consolidation period. But why is the price consolidating instead of falling? For that we have to look at IOMAP.

BCH IOMAP

fxsoriginal

The IntoTheBlock In / Out of the Money Around Price (IOMAP) model shows us that BTC is currently sitting on a strong retaining wall at $ 223. At this level, around 106,810 addresses had previously bought 816,280 BCH. According to IOMAP, this retaining wall absorbs much of the selling pressure that is preventing the downtrend for now. However, if sellers drop below this level, they may have enough momentum to bring the price below $ 200.

On the upside, we have a medium to strong resistance level, $ 233. At this level, 96,400 addresses had bought 594,000 BCH.

BCH 12 hour chart

bchusd 12 hour chart

The 12 hour chart helps us better understand the possible price movements. The newest candlestick also displayed a sell signal on the TD sequence display. To consolidate this downtrend, the price will need to fall below the SMA 50 ($ 224) to break the flag formation bearishly. After that, the price is likely to fall to the USD 214.45 support level. The relative strength index (RSI) is trending around the neutral zone, showing that sellers have plenty of room to maneuver before the asset becomes undervalued.

BCH key levels

(tagsToTranslate) BitcoinCash (t) CryptoCurrencies



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