Bitcoin Cash is among the top performing cryptocurrencies for a second consecutive day.
The top-ten cryptocurrency has undergone a significant appreciation this week, moving from starting the week around $78 to over $175 today.
Despite reversal signs taking place on the hourly chart, Bitcoin Cash has continued its surge.
Buying momentum is strong with both the daily RSI and MACD increasing to the upside.
The MACD and RSI are commonly used measures of momentum.
The reversal signs taking place on the hourly chart consisted of a bearish divergence forming between the price and RSI yesterday.
A bearish divergence is a typical trend reversal pattern and occurs when the price goes on to form higher highs despite the RSI forming lower highs.
This shows price continuing to increase despite buying pressure falling off.
With strong buyer momentum as measured by the daily RSI and MACd increasing, price continued to surge significantly.
Another bearish divergence is forming today, but traders should be cautious to take this as a strong reversal sign given the strong buyer momentum.
- Bitcoin Cash continues to be among top performers with an over 45% appreciation over the past 24 hours.
- Bearish divergence formed yesterday, but price continued to increase given the strong buyer momentum. Both the daily RSI and MACD continue to increase reflecting the buying momentum.
- Another bearish divergence is currently forming, but traders should be cautious to take this as a sign of reversal.
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