As predicted in my article of last week on the price direction for Bitcoin Cash, the crypto asset which mirrors the movements of Bitcoin broke below the consolidation flag pattern to the downside, and was able to hit the initial support target at 267.99 before it retraced to the broken border in a pullback move. Yesterday’s daily candle was a conclusive hammer which closed just under the bear flag pattern.
Today’s price action shows more of selling than buying, and with the daily candle presently trading at $308.66, we seem headed for another hammer candle close below the flag pattern.
The expectation for the bear flag formation is for price action to continue the breakout move to the downside. If this expectation plays out, then we can expect BCHUSD to resume the downward move it began yesterday, targeting the 267.99 support area once more. Continued downward pressure below this price level will open the door for possible targeting of 231.32.
If the daily candle for today and tomorrow ends up closing inside the flag, this will invalidate the setups described above.Don’t miss a beat! Follow us on Telegram and Twitter.