By the end of December 2018, the price of Bitcoin Cash (BCH) was trading near ₿0.025. A rapid upward move ensued shortly after. By the end of the year, the price had more than doubled in value to ₿0.0550.
However, it immediately began to decrease. It traded between ₿0.035 and ₿0.04 until April 2019.
Another upward move was followed by a decrease. The BCH price again dropped to ₿0.035 in July 2019.
Where will it go next? Keep reading in order to find out.
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BCH: Trends and Highlights for June 2
- BCH/BTC is following an ascending support line.
- Short-term moving averages are bearish.
- Long-term moving averages are bullish.
- There is strong support near ₿0.030 and $0.035.
- There is resistance near ₿0.040.
The price has been increasing since February 2019, when it reached lows close to ₿0.032.
Since then, it has been following the ascending support line outlined below:
The line also coincides with the 0.786 fib level of the entire upward move beginning in Dec 2018.
The moving averages give a different outlook for the short- and long-term.
However, a bullish cross between the long term moving averages of 100- and 200-periods has also occurred.
This could be a sign that a long-term uptrend has begun. In that case, the current decrease would be a short-term movement inside a longer uptrend.
A look at the short-term trading pattern gives a brighter outlook.
The price has been struggling to break out above the resistance line at ₿0.038 and has been doing so since June 26.
However, it was successful in doing so on July 1st. This movement was preceded by bullish divergence in both the RSI and the MACD.
BCH found resistance near ₿0.040, an area which previously acted as support and began a small decrease.
The Bitcoin Cash price has been following an ascending support line for more than a year. The price is currently right on this support line.
While the ascending support line may fail to provide enough support to the price, the ₿0.030 – ₿0.035 support level should do so, since it has provided strong support since the beginning of 2019.
Furthermore, the short-term bullish divergence that has developed does not seem sufficient in initiating an upward move.
While a short-term upward move has already begun, we believe that more consolidation is required before a long-term uptrend begins.
The movement of the long-term moving averages and significant support area makes us believe that an uptrend will soon begin.
What do you think of the Bitcoin Cash price against Bitcoin? Let us know your thoughts in the comments 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.
Images are courtesy of Shutterstock, TradingView.