The price of Bitcoin Cash (BCH) began to decline after reaching an annual high of $329 on June 30.
On November 21, the asset's exchange rate went beyond the short-term model, which may cause concern for BCH holders.
After breaking the long-term downward resistance line, which held for more than 600 days, Bitcoin Cash began to rise. This move led to a new annual high of $329. However, after that, the rally quickly lost its momentum, and the Bitcoin Cash price is currently trading in the middle of the long-term range. On October 23, the asset formed a lower maximum, as can be seen on the chart.
The Relative Strength Index (RSI) shows mixed readings. The indicator is falling, but still remains above the 50 mark.
Now, on the weekly timeframe, the situation is ambiguous, but on the daily timeframe there is a bearish trend, based on price movement and RSI indicators.
The chart shows that the price of Bitcoin Cash has exited an ascending parallel channel, which is considered a bearish pattern. This breakthrough indicates the completion of the previous upward movement. The daily RSI is below the 50 mark and continues to decline.
If the decline continues, BCH may fall by another 18% and reach the horizontal support area of $180, which coincides with the Fibonacci retracement level of 0.618.
Despite the bearish outlook for Bitcoin Cash, a return to the channel's support line is possible, which could lead to a 36 percent increase to the next resistance level of $300.
