2022 BCH Closing Price Had This BTC Connection, Will 2023 Be Any Different?

  • BCH ended 2022 in a 2-year low
  • However, BCH witnessed a growth in coin distribution.

bitcoin cash [BCH]was trading at $97.74 as of December 31 and closed 2022 at a two-year trading low, data from CoinMarketCap revealed. Also affected by the severe fall in the cryptocurrency market during the year, the value of BCH fell by 77%.

Read Bitcoin Cash [BCH] price prediction 2023-2024

by data from CryptoWatchBCH shares a statistically significant positive correlation with the leading coin, Bitcoin [BTC]. Therefore, its performance in 2022 mirrored that of the real currency.

Source: CoinMarketCap

Only for bears…

An assessment of BCH’s performance on the daily chart revealed that it closed 2022 severely oversold. Furthermore, indications derived from the daily chart showed that BCH had lost control of the market to the bears since December 12.

A look at the moving average convergence divergence (MACD) revealed a descending intersection of the MACD line (blue) with the trend line (orange) since December 12. Therefore, starting a new bearish cycle for the altcoin. Since then, its price has dropped 8%.

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The spots held by the BCH Directional Movement Index (DMI) and Exponential Moving Average (EMA) confirmed that sellers were in control of the market. At press time, the DMI showed that the strength of the sellers (red) at 29.67 was solidly above that of the buyers (green) at 11.55.

Furthermore, the average directional index (ADX) also indicated that sellers had a very strong hold on the market. This could make it difficult for buyers to regain control in the short term.

Furthermore, the exponential moving average (EMA) showed that the sellers were currently dominating the market. This was because the 20 EMA (blue line) was below the 50 EMA (yellow line). This suggested that those who sold their coins had more influence in the market than those who hoarded them.

A look at key indicators like the Relative Strength Index (RSI) and the Money Flow Index (MFI) further confirmed the oversold nature of BCH. At press time, these indicators were trending down at 39.19 and 32.72, respectively.

Too soon for bullish relief?

An assessment of BHC’s Chaikin Money Flow (CMF) offered a bullish reprieve. At press time, the dynamic line (green) of the asset’s CMF registered a positive value of 0.09 and was seen in an uptrend. Therefore, creating a bullish divergence.

A CMF buy signal is seen when an asset’s price action develops a lower low in oversold zones, with the CMF diverging from a higher low and beginning to rise.

Source: TradingView

source: ambcrypto.com

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