The leading cryptocurrency, Bitcoin, experienced a drop to $44,333 amid waning excitement over ETFs. The crypto market is known for its high volatility, and constant upward price movements are not a given. Monthly charts may show green, but fluctuations similar to the current ones are necessary for the formation of the candlestick patterns with wicks at both ends.
Bitcoin Cash (BCH) has been on the rise since the start of 2023, breaking free from a descending resistance line, partly due to support from EDX Markets. However, a decision by major financial players to delist BCH shortly after its June listing reversed fortunes.
BCH reached a peak of $329, which still stands, but failed to overcome a key resistance area after a short decline. The weekly RSI provides no clear direction, and with Bitcoin’s negative trend, a short-term downturn may persist over the weekend.
BCH’s daily chart does not indicate a clear direction either. It has been trading within a rising parallel channel since August 2023, which often signals corrective movements. Despite potential bounces towards the channel’s resistance, the delisting by EDX Markets has dampened hopes for a BCH comeback.
A strong recovery in altcoins could propel BCH out of the channel towards $390, while a short-term bearish trend could push it down to $230. Investors should remain cautious of sudden market shifts, especially with negative economic data influencing the crypto market as the Fed’s meeting approaches.
