Near-term bearish signs for Bitcoin Cash

Summary

• Bearish doji candlestick pattern occurs after seven days up.
• Occurs on test of neckline of large bearish head & shoulders topping pattern.
• Potentially significant drop possible to below most recent swing low.

Near-term bearish signs for Bitcoin Cash

A bearish daily Doji candlestick pattern occurs in Bitcoin Cash (BCH/USD) following seven days up, while a potential 1-day reversal triggered with a break below the candle’s low. This is the first time in eight days that price has dropped below the prior day’s low and is a clear change in the pattern of higher daily lows and higher daily highs.

The potential topping pattern occurs in an area of potential resistance identified by:

• Neckline resistance of large bearish head and shoulder top pattern (HS).
• Area of 78.6% Fibonacci retracement of most recent swing high to low decline.
• Bearish 14-period divergence occurs on 4-hour chart.

Most recent low to $196.80 was not close to reaching the…