Bitcoin Cash’s considerably positive correlation with Bitcoin saw BCH plummeting within the previous week. Data from Coinmarketcap cap shows Bitcoin Cash dropped 8% over the last seven days. Santiment confirmed consistent plummets in the altcoin, indicating investor distribution.
Also, the increase in Bitcoin Cash’s trading volume & the absence of a price surge on October 13 indicated buyer exhaustion. Coinmarketcap data shows BCH’s trading volume surged 65% within the past 24 hours.
Sellers Cashing Out
The daily chart shows buying momentum declined within the previous week, as the past seven days witnessed BCH’s price plummeting. Consequently, October 5 sessions saw the token’s RSI (Relative Strength Index) and the MFI (Money Flow Index) falling beneath their neutral levels to hit new lows.
While publishing this post, the Money Flow Index headed toward the oversold territory at 33.41. The Relative Strength Index mimicked such trends, reading 41.79 during this publication. Meanwhile, the Bitcoin Cash market saw a new bearish cycle emerging on October 10.
While publishing this news, the MACD (Moving Average Convergence Divergence) exhibited red histogram bars. Moreover, the MACD line and the trend line intersected in a downside trend.
Moreover, assessing the token’s OBV (on-balance volume) showed investors massively distributed Bitcoin Cash since September 9. The indicator maintained continued declines, with the price plummeting by 15%.
Before Dismissing the Bitcoin Fork
While these crucial indicators confirmed a drop in Bitcoin Cash’s accumulation over the previous week, evaluating the coin’s CMF (Chaikin Money Flow) revealed a divergence with BCH price. The failing prices saw the CMF retesting levels beyond the center line after a positive number of 0.08.
That indicated a buying momentum increase, which generally precipitates an uptick in the token’s price. Nevertheless, as with the current marketplace, a price/CMF divergence emerges whenever the crypto price trades inside an oversold region while its Chaikin Money Flow continues to surge.
That generally presents a buy sign, so market players preparing to go against the market should beware of this. Also, BCH will mimic Bitcoin’s upcoming tendencies. Enthusiasts should watch the leading crypto for informed decisions.
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