On Apr 3, 2019, the Bitcoin Cash price began a rapid upward move and increased by more than 100 percent in two days. Since then, the BCH price has been on a gradual uptrend — briefly reaching highs above $500 in June.
There was massive volume during the initial upward move. However, it has been decreasing since.
How long will BCH continue to increase? Keep reading below in order to find out.
Bitcoin Cash Price: Trends and Highlights for June 26
Sponsored- The BCH price has been trading inside an ascending wedge.
- There is bearish divergence developing in both the RSI and the MACD.
- The price is trading inside a short-term horizontal channel.
- There is short-term bearish divergence developing in the RSI.
BCH Price in an Ascending Wedge
On Apr 2, the Bitcoin Cash price reached a high of $354.1. The subsequent decrease took it to $227.4 on Apr 30.
Since then, the price has been increasing, trading inside the ascending wedge outlined below:
At the time of writing, the price was trading close to the resistance line of the wedge and approaching the point of convergence between the resistance and support lines.
Since the ascending wedge is a bearish pattern, it is more likely that the price will break down.
Let’s take a look at technical indicators in order to see if they confirm or reject this hypothesis.
Possible Reversal
Sponsored SponsoredSince reaching an initial high of $354 on Apr 3, the BCH price has continued to increase, creating the resistance line of the wedge.
However, during this time, the RSI and the MACD have both generated lower values. Furthermore, they have not broken the resistance line of the decrease.
This is known as a bearish divergence and often precedes price decreases.
It is significant in value, occurring in both indicators and occurring in a bearish pattern.
Therefore, we believe that it is likely that the Bitcoin Cash price will continue to trade inside the ascending wedge until it eventually breaks down.
At this point, a breakout appears unlikely.
Horizontal Channel
SponsoredIn the short-term, the price has been trading inside a horizontal channel.
At the time of writing, it was trading very close to the resistance line.
The BCH price has previously made three unsuccessful attempts at a breakout, which were all characterized by long upper wicks. This indicates that there is selling pressure in the market.
Furthermore, the RSI has created significant bearish divergence during the tops near $500 experienced on June 23 and June 26.
Therefore, we now have bearish divergence occurring in both long- and short-term time-frames.
Sponsored SponsoredThis reading makes it likely that the price will decrease towards the support line of the horizontal channel.
Summary
The price of BCH has been trading inside an ascending, broadening wedge since initiating an upward move on Apr 3. During this time, both the RSI and the MACD have created bearish divergence.
In the short-term, the BCH price is trading inside a horizontal channel.
Technical indicators support a decrease towards the support line of this channel.
Where do you think the price of BCH will begin a reversal? 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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