After Binance delisted Bitcoin SV from the exchange, the price of Bitcoin Cash spiked. On Apr 15, the price reached a high of $335 on Coinbase.
Since then, the price dropped but Bitcoin Cash has subsequently dropped. Nonetheless, prices have stayed mostly above $300.
Will Bitcoin Cash maintain this level of is a drop below $300 forthcoming?
Let’s find out:
Bitcoin Cash (BCH): Trends For April 16, 2019
- The price of BCH/USD has been on a downtrend since Apr 6.
- Bitcoin Cash is trading inside an ascending triangle.
- Bearish divergence is developing in the RSI.
- There is resistance near $353.
On Apr 11, the price reached an hourly low of $254.177. It has been gradually increasing since.
The price has made several higher lows.
Tracing these lows gives us an ascending support line:
On Apr 6, the price reached an hourly high of $332.63. Several market cycles have been completed, and the price has reached the same level three times.
Tracing these highs gives us a horizontal resistance line.
Together, the resistance and support lines combine to create an ascending triangle:
It is likely that the price will keep increasing at the rate predicted by the triangle until a decisive move occurs.
In order to predict the direction of this move, a look at technical indicators is required.
We begin with the RSI.
On Apr 15, the price made a high of $311.96. During the same day, it made another high of $335.
Similarly, the RSI made the first high on Apr 15. However, it has continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases.
Using this indicator, it is likely that the price will fall towards the resistance line of the triangle.
To determine future price levels, we now look at possible resistance areas.
The closest resistance area is found near $353. If the price were to break out from the triangle, it is likely it would reach this area. We believe that the price will eventually reach this area.
Summary of Analysis
The price of BCH is likely to keep trading inside the confines of the ascending triangle. It is likely that it initiates a short-term drop towards the support line of the triangle. However, we believe it will eventually break out.
Do you think Bitcoin Cash will break out from the triangle? Let us know your thoughts in the comments below.
To read our 2019 and 2020 price predictions for Bitcoin Cash, click on the green button below:
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.