BCH Fake Breakout Triggers Aggressive Selling Pressure

Bitcoin Cash (BCH) has pulled off a classic 'trap' on traders by breaking above a descending trendline, only to reverse sharply and sell off aggressively. This fake breakout often signals that sellers were waiting at the trendline specifically to trap late buyers.

The price of BCH is currently trading at $243.1, down 7.04% or $18.422 over the past 24 hours. Derivatives are driving most of this move, with futures volume standing at $271.50 million and spot volume at $37.20 million.

The sharp drop following the fake breakout suggests that sellers were more than ready to punish anyone who chased the initial move. To confirm a real breakout, BCH would need to close above $305.1 on the 4-hour chart with genuine conviction this time.