At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. In our April 30 analysis of Bitcoin Cash (BCH), we predicted price increases. Our prediction was validated the next day when the price reached the resistance area we have defined below.To learn more, read our latest BCH/USD($) and BCH/EUR(€) analysis below:
On Apr 30, the price reached a low of $227 and €203. A sharp increase ensued and the price reached a high of $277.5 and €247.5 on May 1.
Where will the price of Bitcoin Cash go next?
Let’s find out!
Bitcoin Cash (BCH): Trends For May 2, 2019
- BCH/USD and BCH/EUR reached a low on Apr 30.
- It broke out from a symmetrical triangle the next day.
- Bearish divergence is developing in the RSI and the MACD.
- There is support near $250 and €226.
BCH/USD is analyzed at thirty-minute intervals from Apr 30 to May 2. This is done in order to trace the current trading pattern. In order to avoid confusion, we will not be using images of the BCH/EUR pair until we address future possible price levels. There, the relevant resistance and support areas will be shown in dollars and euros.
On May 1, Bitcoin Cash reached a high of $277.32. A gradual decrease ensued and the price made several lower highs.
Tracing these highs gives us a descending resistance line:
On May 1, the price reached a low of $259.2.A gradual increase followed. Bitcoin Cash has made several higher lows in the process.
Tracing these lows gives us an ascending support line. Together, the resistance and support lines combine to create a symmetrical triangle:.
The price broke out from the triangle on May 2. Where will it go next?
In order to predict future movements, a look at technical indicators in a longer timeframe is required.
The price of BCH on Coinbase is analyzed at two-hour intervals from Apr 25 to May 2 alongside the RSI and the MACD.
The relative strength index (RSI)is an indicator which calculates the size of the changes in price in order to determine oversold or overbought conditions in the market.
The moving average convergence divergence (MACD) is a trend indicator that shows the relationship between two moving averages (long and short-term) and the price. It is used to measure the strength of a move.
They are shown in the graph below:
On May 1, the price made a high of $277.32. After a gradual decrease, it reached the same levels on May 2.
Similarly, the RSI and the MACD made their first highs on May 1. However, they have continued to generate lower values since.
This is known as bearish divergence and often precedes price decreases.
Furthermore, the candles near $275 have had long upper wicks. This indicates that there is selling pressure in the market.
The use of these indicators suggests that the price will decrease towards a support area.
Support areas are created when the price revisits the same level several times. They can provide reversal areas in case a breakout/breakdown occurs.
One support area is shown for BCH/USD and BCH/EUR in the graphs below:
The closest support area is found near $250 and €226. We believe the price will eventually reach this area.
Summary of Analysis
The price of BCH is likely to decrease and reach the support area outlined above.
To read our 2019 and 2020 price predictions for Bitcoin Cash, click on the blue button below:
Do you think Bitcoin Cash will drop to the support area? 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.