BCH Closing Price for 2022 If This BTC Dial, Will 2023 Be Different?

  • BCH ended 2022 at its lowest level in two years
  • However, BCH has seen a growth in coin distribution

Bitcoin Cash [BCH]It traded at $97.74 on Dec. 31 and closed 2022 at a two-year trading low, according to data from CoinMarketCap open. It was also affected by the sharp decline in the cryptocurrency market during the year, during which the value of BCH fell by 77%.

Read Bitcoin Cash [BCH] Price forecast 2023-2024

According to data from CryptoWatch, BCH shares a statistically significant positive correlation with the leading cryptocurrency, Bitcoin. [BTC]. Therefore, its performance in 2022 is the reverse of the king coins.

Source: CoinMarketCap

Just for bears…

BCH performance evaluation on the daily chart revealed that the close of 2022 was significantly oversold. In addition, indicators from the daily chart show that Bitcoin Cash has lost control of the market to the bears since December 12th.

A look at the Moving Average Convergence Divergence (MACD) revealed a bearish crossover of the MACD line (blue) with the trend line (orange) from December 12th. Thus starting a new downward cycle for alternative currencies. Since then, the price has fallen by 8%.

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The positions occupied by the Directional Movement Index (DMI) and the Exponential Moving Average (EMA) on the BCH confirmed that the sellers were in control of the market. At the time of publication, the DMI showed that the strength of sellers (red) at 29.67 was much higher than buyers (green) at 11.55.

Additionally, the Average Directional Index (ADX) indicated that the sellers had a very strong hold on the market. This can make it difficult for buyers to regain control in the short term.

Moreover, the exponential moving average (EMA) has shown that sellers are currently in control of the market. This was because the 20 EMA (blue line) was below the 50 EMA (yellow line). This indicates that those who sold their coins had a greater impact on the market than those who collected them.

A look at major indicators such as the Relative Strength Index (RSI) and Money Flow Index (MFI) further confirmed the oversold nature of the BCH. At the time of publication, these indices are stuck in downtrends at 39.19 and 32.72 respectively.

Too early for an upward rest?

BHC’s Chaikin Money Flow (CMF) valuation showed a bullish respite. At the time of publication, the dynamic (green) line of the asset’s CMF showed a positive value of 0.09 and was seen in an upward trend. Thus creating a bullish divergence.

A CMF buy signal appears when an asset’s price action develops a higher low into oversold areas, as the CMF diverges with a higher low and starts rising.

Source: TradingView

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