- Report: Stablecoins Pegged to USD Set All-Time High Record for Trading Volume
- Craig Wright: Copyright Registration Proves I’m Bitcoin's Satoshi; Copyright Office: Nope!
- Ethereum Price Technical Analysis (May 23): Correction to Support Level Is Expected
- SEC Ends a $30M Cryptocurrency Ponzi Scheme Supposedly Backed by Diamonds
- The Ethereum Foundation Allocates $30 Million for Mainnet Development
Bitcoin Cash (BCH) is currently trading at around $404. Looking at the chart, we can see that the price is in a strong uptrend movement after a minor correction.
Also, we can see a formation of cup and handle pattern (similar to BTC’s recent movements); it is a very bullish pattern. The buying point was at around $325. Currently the price is approaching its resistance at $408 with support at $330.
According to Dow Theory, the price is in the public participation phase. During this phase, negative sentiment starts to dissipate. As the good news starts to permeate the market, more and more investors move back in, sending the prices higher. This phase tends not only to be the longest lasting, but also the one with the largest price movement.
It is also the phase in which most technical and trend traders start to take long positions. We also saw features of the distribution phase in between, which is represented by the topping of the market where the price movement starts to flatten as selling pressure increases.
Bitcoin Cash’s price was moving between the channels. Recently we saw that the top channel started expanding with the price breaking out of the channel. This indicates a major price activity, combined with momentum indicator, which is a strong and positive sign that the price is expected to go up.
When taking 9 period moving averages (blue) with 21 period moving averages (red), it indicates a positive trend with a bullish crossover as the price moving above the 9 period moving average.
Bitcoin Cash (BCH) is currently trading at around the $400 level. The resistance is at $408 with support at $330. There is a formation of a cup and handle pattern, which is bullish pattern. Currently the price is approaching its resistance; it is suggested to take position only after the price crosses the resistance or is around the support.
Considering other indicators, we get bullish signals. As per the Dow Theory, the price is in the participation phase, but after the accumulation phase, we saw a glimpse of the distribution phase, which is not a good sign. Therefore, it is recommended to wait for price to close above resistance. Swing trading is not suggested as a major price correction is not expected. Overall, the outlook is bullish.