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Bitcoin Cash Price Analysis: BCH/BTC Breaks Out From a Symmetrical Triangle, Targeting ₿0.033open_in_new
On September 5, 2019, the BCH price reached a low of ₿0.0271. An upward move followed and BCH reached a high of ₿0.030 on September 11. After a brief decrease, BCH resumed its upward movement on September 16.
At the time of writing, it was trading close to ₿0.032.
Will BCH continue to increase or does a reversal await? Keep reading below if you want to find out.
For our previous analysis click here.
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Looking at the six-hour chart, we can see that BCH had been trading inside a symmetrical triangle since July 4.
On September 17, it broke out above this triangle.
This movement is still ongoing.
In order to predict the top of the breakout, we will take a look at possible reversal areas.
Below, we have traced two resistance areas, which are found at ₿0.033 and ₿0.035 respectively.
At the time of writing, the price is trading below both areas.
The significance of the current resistance above price is reiterated once we incorporate daily moving averages (MA).
The 100-day MA coincides with the first resistance area at ₿0.033, making it a very suitable level for the initiation of a reversal.
Let’s take a look at the short-term movement and see if BCH is likely to reach it..
A look at the two-hour chart shows that BCH is trading inside an ascending, broadening wedge.
The wedge is a bearish pattern, making a price breakdown more likely.
At the time of writing, it was trading very close to the resistance line of the wedge.
A look at the RSI gives a slightly bearish sentiment.
It has been generating bearish divergence for the past 24 hours.
While the divergence is not significant nor present in longer time-frames, it is occurring at the resistance line of a bearish pattern.
This makes us believe that BCH will not immediately break out above the resistance line.
Rather, it is likely to increase at the rate predicted by the wedge, until it reaches one of our resistance areas.
The BCH price is trading inside an ascending, broadening wedge.
According to our analysis, it is likely to reach our first resistance area and begin a reversal.
For hypothetical trading purposes, we consider BCH a sell near ₿0.033.
Do you think that BCH will reach 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.
As a trusted news outlet in the blockchain and cryptocurrency industry, BeInCrypto always strives for the highest journalistic standards and adheres to a strict set of editorial policies. BeInCrypto is an independent website with authors and management that may personally invest in cryptocurrencies or blockchain startups.