On July 15, 2019, the Bitcoin Cash price reached a low of ₿0.025. Since then, it has been gradually increasing, reaching a high of ₿0.0345 on July 31.
At the time of writing, BCH was trading at ₿0.034.
How long will the uptrend continue for BCH? Continue scrolling below in order to find out.
For our previous analysis click here.
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Bitcoin Cash Price: Trends and Highlights for July 31
- BCH/BTC broke out from an ascending triangle.
- There is resistance at ₿0.035.
- Daily moving averages have made a bullish cross.
- There is a short-term bearish divergence developing in the RSI.
Previous Movement
In our previous analysis, we stated that
An analysis of these technical indicators supports a breakout from the short-term ascending triangle.
On July 26, BCH broke out from the triangle.
Since then, the Bitcoin Cash price has been gradually increasing.
Will it begin to reverse, or are there further gains in store?
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A look at the daily time-frame shows us two things:
- The BCH price is following a descending resistance line.
- There is a resistance area at ₿0.035.
At the time of writing, the BCH price had reached the resistance area and retraced slightly.
A look at the moving averages (MA) suggests that the price will eventually be successful in breaking out.
A bullish cross transpired between the 10- and 20-day MAs in July.
SponsoredThis is often a sign that an uptrend has begun.
Since we decided that BCH is likely in an uptrend and will break out of the resistance, let’s go back to the short-term outlook in order to predict future movement.
Future Movement
A look at the three-hour RSI shows the first signs of weakness.
A bearish divergence has been developing since July 26.
While the divergence is significant, it is not present in time-frames longer than three hours.
Therefore, an outline of a possible Bitcoin Cash price movement is given below.
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According to our analysis, the price is likely to decrease towards the ascending support line, before initiating another breakout attempt.
We believe BCH will eventually be successful in increasing above the resistance.
A breakdown below the support line seems unlikely.
Bitcoin Cash Price Summary
The BCH price is attempting to break out above a significant resistance area.
According to our analysis, it is likely to undergo a short-term decrease before eventually breaking out.
Do you think the BCH price will break out above the resistance area? Let us know 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.
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