Bitcoin Cash is still trending lower after recently getting rejected on its descending channel resistance. Sustained bearish pressure could take price down to the Fibonacci extension levels next.
Price has already breached the 38.2% and 50% levels, though, and seems to be setting its sights on the 61.8% Fib at the mid-channel area of interest. Stronger selling momentum could drag Bitcoin Cash down to the 78.6% extension at $342 or the full extension near the channel support.
The 100 SMA appears to be attempting a bullish crossover to signal a return in bullish momentum. However, with Bitcoin Cash currently below these moving averages, there’s a chance the crossover might not be completed.
Stochastic is dipping back to oversold levels to signal that sellers refuse to let up. RSI is also moving down again and has dipped back to the oversold region. Turning higher could signal that buyers are taking over while sellers take a break. In that case, Bitcoin Cash could test the channel top near the moving averages’ dynamic inflection points.
Uncertainty surrounding the upcoming hard fork on November 15 appears to be weighing on Bitcoin Cash these days as there is a strong disagreement between the BCH development teams, Bitcoin ABC, nChain, and Bitcoin Unlimited.
Recall that Bitcoin ABC, the biggest Bitcoin Cash client, released a version of its full node Bitcoin Cash implementation on August 20. This came days after nChain, Craig Wright’s Blockchain development firm, announced their own fork. This latter version opposed the addition of new opcodes and other arbitrary changes to the network, which were included in the former.
Cobra Bitcoin, anonymous owner of Bitcoin.org and previous critic of Bitcoin Cash, announced its own client hard fork that could settle things in the BCH community. He called this upgrade a “safe implementation of the Bitcoin Cash protocol.”
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