Bitcoin Cash appears ready for a reversal as it slumped below its ascending channel on the 1-hour time frame. Price appears to have completed a quick pullback to the broken channel support and might be headed lower, but a larger pullback to the Fib retracement levels might also be possible.
The 38.2% level lines up with the 200 SMA dynamic inflection point while the 61.8% level is closer to the mid-channel area of interest. The 100 SMA is above the longer-term 200 SMA to suggest that the path of least resistance is still to the upside or that the rally is more likely to resume than to reverse. Then again, this indicator is pointing down to reflect slower bullish momentum and hint at a potential bearish crossover.
Stochastic is pointing down to show that selling pressure is returning, likely taking Bitcoin Cash down to the swing low or lower. RSI is also pointing south, barely even making it halfway through its climb to the overbought zone. This suggests that bears are eager to push for more declines.
News that Mt. Gox has reportedly sold $230 million in bitcoin and Bitcoin Cash lead to a sharp drop for the latter. This has been processed through a trustee in order to pay creditors for the bankrupted exchange. These were sold from March 18 to June 22 as part of the civil rehabilitation and many speculate that there are more BTC and BCH left to be sold in the market, thereby putting more downside pressure on prices.
On a less downbeat note, Google will reportedly lift its ban on Bitcoin and ICO ads by next month, likely spurring some resurgence in general interest. This could then facilitate stronger volumes and increased activity, although the company will only approve ads from regulated entities based in the US and Japan.
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