On Apr 6, the price reached a high of $333 and €298. It reached similar levels on Apr 8 and 15. It has been gradually decreasing since.
When will the decrease for Bitcoin Cash come to an end?
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Bitcoin Cash (BCH): Trends For April 18, 2019
- The price of BCH reached similar highs on Apr 6, 8 and 15.
- Bitcoin Cash is trading inside an ascending triangle.
- Bearish divergence is developing in the RSI and the MACD.
- There is support near $275 and $255.
- There is support near €241 and €225.
Ascending Triangle
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
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On Apr 6, the price made a high of $332.64. On Apr 15, it made another high of $335.
Similarly, the RSI and the MACD made the first high on Apr 6. However, they have continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases.
Using this indicator, it is unlikely that the price will break out from the triangle. A breakdown is possible.
Future Movement
To determine future price levels, we will look at possible resistance and support areas.
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The closest support area is found near $275 and €241. This is followed by the support area near $255 and €225. We believe that the price will eventually reach these areas.
Summary of Analysis
The price of BCH is likely to keep trading inside the confines of the ascending triangle. We believe that a breakout is unlikely. However, it is possible that short-term increases towards the resistance line will occur.
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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