Bitcoin Cash turned bullish this year, following Bitcoin and the rest of the cryptocurrency up, but the biggest gains were made in April. Bitcoin Cash surged to $1,483 according to my broker. It kept surging during the first two weeks of May, being in the group of cryptocurrencies that kept going higher until the middle of last month.
The reversal came and BCH/USD plunged nearly $1,000 to $515. It broke all moving averages on the daily chart, apart from the 200 SMA (purple), which held the decline and has been acting as solid support indicator for Bitcoin Cash.
Buyers have tried to push the price higher nd reverse course possibly, but they have failed consistently and the highs have been getting lower after every attempt. The 100 SMA (green) acted as resistance initially in the first bounce, then the 20 SMA (gray) caught up and it has been pushing BCH/USD down.
MAs are squeezing Bitcoin Cash in a tight corner
This shows that the selling pressure still remains. The range is getting narrower as the 200 SMA keeps holding as support at the bottom, while the 20 SMA keeps pushing from the top.
So, a breakout is about to take place soon and seems like it might be to the downside, since the highs keeps getting lower fast and the price is sticking too long to the 200 SMA. The news about the Miami mayor initiating support for Chinese Bitcoin miners is not helping Bitcoin or the crypto market either today, so the downside seems more likely.