On Apr 15, the price reached a high of $335 and €296. It has been gradually decreasing since, reaching lows of $280 and €253 on Apr 21. After a slight increase, the price began to decrease sharply.
At the time of writing, it was trading below the levels reached on Apr 21.
Will the price of Bitcoin Cash continue falling or is reversal coming soon?
Let’s find out:
Bitcoin Cash (BCH): Trends For April 24, 2019
- BCH/USD and BCH/EUR reached a high on Apr 15.
- Bitcoin Cash is trading inside a descending channel.
- The moving averages have made a bearish cross.
- There is support near $260 and €235.
On Apr 16, Bitcoin Cash reached a high of $324.9 Several market cycles have been completed, and the price has created lower highs.
Tracing these highs gives us a descending resistance line:
On Apr 15, the price reached a low of $298. A gradual increase was followed by a decrease.
The price has made several lower lows.
Tracing these lows gives us a descending support line. Together, the resistance and support lines combine to create a descending channel:
It is likely that the price will keep decreasing at the rate predicted by the channel until a decisive move occurs.
In order to predict the direction of this move, a look at technical indicators is required.
On Apr 22, the 50-period MA crossed below the 200-period one. This may indicate that a downtrend is about to begin.
Furthermore, the MACD line crossed below 0 the next day. This supports the hypothesis that a downtrend is about to begin.
The use of these indicators suggests that the price will decrease at the rate predicted by the channel. It is not sufficient in predicting a breakdown.
To determine future price levels, we will look at possible support areas.
The closest support area is found near $260 and €235. If the price keeps decreasing at the rate predicted by the channel, it is likely to reach these areas.
Summary of Analysis
The price of BCH is likely to keep decreasing at the rate predicted by the descending channel. We believe that it will eventually reach the support area outlined above. Low around $260/€235 may be reached in the short-term.
Do you think Bitcoin Cash will break down from the channel? 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.