The BCH price has been decreasing since reaching a high of ₿0.048 on Feb. 14. The decrease has transpired over several waves. On March 8, the price reached the ₿0.033 support area, from which it broke out prior to beginning the entire upward move.
Bitcoin Cash (BCH) Price Highlights
- There is support at ₿0.033.
- There is resistance at ₿0.036.
- The price has found support above its 200-day moving average (MA).
- There is a slight bullish divergence in the RSI.
Well-known trader @ACXTrades tweeted a BCH chart that shows the price trading inside a significant support area and announced that he is taking a shot at initiating a long trade.
$BCH Taking a shot at a long here. pic.twitter.com/jYju5HrFdU
— ◇.A.C.X.◇ (@ACXtrades) March 8, 2020
Will this trade be successful, or will the BCH price decrease below this important support area? Continue reading below if you want to find out.
Crucial Support
The main support area for BCH is found at ₿0.033. The price is currently barely trading above it, having validated it previously as support with a long lower wick. This area also coincides with the 200-day moving average (MA), making it more likely to initiate a bounce.
However, the price has broken down from its previous trading range of ₿0.036-₿0.042. So, the ₿0.036 area is likely to act as resistance from now on.
Future Movement
In the future, the most likely movement seems to be a consolidation between these support and resistance areas, found at ₿0.033 and ₿0.036. The upper and lower limits can serve as gauges of the direction of the trend. If the price reclaims the ₿0.036 support area, it will likely head toward ₿0.042.
On the other hand, if the price were to break down below ₿0.033 and in turn the 200-day MA, it would confirm that its upward move has ended and lower lows are expected.
To conclude, the BCH price is trading inside a major support area found at ₿0.033 that is likely to act as a make-or-break level. Its longer-term trend is considered bullish as long as the price stays above this area.
Bitrue