- Bitcoin Cash price in bearish correction after mining reward halving on Wednesday.
- The formation of pennant pattern hints that reversal under towards $200 is in the picture.
Bitcoin Cash finally went through its halving where mining rewards were reduced by half. Halving assists Proof of Work (PoW) networks to control their supply. Past halving events for Bitcoin (BTC) resulted in price rallies, however, the trend appears to be changing. Halvings are experiencing less and less speculation and volatility.
For instance, Bitcoin cash rally before the halving on Wednesday closed in on $300 but came short forming a monthly high at $280. Moreover, following the halving, BCH/USD has thinned in value, dropping towards $260 support. At the time of writing, the price is dancing at $264 amid a building bearish pressure.
Looking at the Relative Strength Index (RSI) in the 4-hour range, it is unlikely that Bitcoin Cash will continue to with the movements towards $300. If the RSI keeps on with the retreat from the overbought it could soon test support at 50. A move such as this will encourage more sellers to join the market and eventually force Bitcoin Cash towards key support levels at $240, $220 and $200.
BCH/USD 4-hour chart
Consequently, the formation of a bearish pennant pattern hints that a reversal is in the picture, especially if the resistance at $280 remains unconquered and losses break the pennant’s support. The 50 SMA at $242 and the 100 SMA at $230 are in a position to provider cushion to any extended loss in value.
Bitcoin Cash Intraday Key Levels
Spot rate: $264
Relative change: -3.70
Percentage change: -1.36%