At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our April 12 analysis of Bitcoin Cash (BCH), we predicted price increases. Our prediction was validated on Apr 15, when the price reached the resistance area of the wedge we have defined below. To learn more, check out our latest BCH/USD analysis below:
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.
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.
Ascending Triangle
The price of BCH on Coinbase is analyzed at one-hour intervals from Apr 6 to Apr 16. This is done in order to trace the current trading pattern.
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.
Technical Indicators
We begin with the RSI.The relative strength index (RSI) is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
This is shown below price in the graph below:
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.
Future Movement
To determine future price levels, we now look at possible resistance areas.Resistance areas are created when the price revisits the same level several times. They can provide reversal areas in case a breakout/breakdown occurs.
One resistance area is traced in the chart below:
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.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.
(I do not have a discord and will not contact you first there. Beware of scammers)
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