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These Two Altcoins Have Broken Out from Long-Term Resistance Lines

2 mins
Updated by Gerelyn Terzo
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In Brief

  • COS has broken out from a descending resistance line after generating bullish divergence in the RSI.
  • There is resistance and support at 135 and 100 satoshis, respectively.
  • BCH has been following a descending resistance line since February.
  • The price is following a short-term ascending support line and has flipped an important resistance level.
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The COS price has broken out from a long-term descending resistance line after generating bullish divergence in the RSI. After generating bullish divergence, BCH is trading right at its long-term resistance line but has yet to break out.
BeInCrypto takes a look at both to try and figure out where they are going next.

Contentos (COS)

The COS price has broken out from a long-term descending resistance line that had previously been in place since September 2019. The breakout was preceded by a very strong bullish divergence in the weekly RSI, increasing its significance. However, after breaking out, the price met resistance at 135 satoshis and created a long upper-wick. This could mean that the price is likely to decrease and validate the line it just broke out from. This is a common movement after breakouts. In order to determine that, a look at a shorter-term time-frame is required.
COS Descending Resistance Line
COS Chart By Tradingview
In the short-term, the price has broken out from a symmetrical triangle and validated the previous resistance area as support. The chart below was outlined by @Cryptoboss1984, who stated that the price will likely continue to move upwards from here.
COS Price Movement
Source: Twitter
However, it looks as if the price is trading inside an ascending wedge, which is considered a bearish reversal pattern. Furthermore, there is bearish divergence developing. Therefore, while the price could continue to increase inside this wedge, it is expected to eventually break down and head towards the 100 satoshi support area.
COS Ascending Wedge
COS Chart By Tradingview

Bitcoin Cash (BCH)

One other coin that has, or is in the process of breaking out from a long-term descending resistance line is BCH, which has had a strong descending resistance in play since February. However, the price is still struggling to reclaim the ₿0.026 area, which previously acted as support since July 2019. However, the price has seemingly created a double-bottom, which is also combined with a bullish divergence in the RSI. A breakout above this descending resistance line and the previous support area would indicate that the price is bullish and is likely to move towards ₿0.034.
BCH Breakout
BCH Chart By Tradingview
In the short-term, BCH has been following an ascending support line, and has flipped the short-term resistance level at ₿0.027 as support. Therefore, the price is likely to continue moving upwards as per the outline given in the first image.
BCH Ascending Support Line
BCH Chart By Tradingview
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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
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