Bitcoin Cash Price Analysis: BCH/BTC Makes A Double Bottom And Begins An Upward Move

Has the Bitcoin Cash price reached a top or will it continue to increase? Continue reading if you are interested in finding out. For our previous analysis click here. If you are interested in margin trading Bitcoin Cash (BCH) and other cryptocurrencies with a multiplier of up to 100x on our new partner exchange with the lowest fees, follow this link to get a free StormGain account!

Bitcoin Cash Price: Trends and Highlights for August 14

• BCH/BTC began an upward move on August 10.
• The move was preceded by bullish divergence in the RSI and MACD.
• There is a significant support area at ₿0.025.
• BCH is trading above the 10- & 20-day moving averages.

Double Bottom

A look at the daily time-frame shows that the Bitcoin Cash price has been following a descending resistance line since the beginning of April. Additionally, there is a significant support area at ₿0.025. The price reached this area on July 15 and August 9. Both times, an upward move began. Incorporating the RSI and MACD into the analysis shows that while the price reached similar values in the aforementioned areas, the RSI and MACD both generated higher values. This is known as bullish divergence and often precedes price increases. In the case of BCH, it preceded the upward move outlined in the introduction. Additionally, a look at the 10- and 20-day moving averages shows that the BCH price is trading above both of them. However, they have yet to make a bullish cross. If one were to occur, it would confirm that an uptrend has begun. The descending resistance line is currently at ₿0.036.

Short-Term

A closer look at the current upward move shows no visible trading pattern. However, it resembles a five-wave Elliott formation. Assuming it is in one, the Bitcoin Cash price is currently in the process of finishing the fourth wave, which has a downward direction. Afterward, it should begin the fifth and final wave and reach the descending resistance line. This view is supported by a look at short-term moving averages (MA). The bullish cross shows that BCH is in an uptrend. However, it has decreased below the 10-period MA, showing decreasing strength. The 20-period MA should act as support and mark the end of wave 4. Afterward, the price should increase towards the resistance line.

Bitcoin Cash Price Summary

The BCH price began an upward move on August 10. According to our analysis, it is likely to continue increasing until it reaches the descending resistance line. Do you think that BCH will continue decreasing? Let us know in the comments below.

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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.