Bitcoin Cash Price Technical Analysis (May 14): On the Verge of Another Bull Rally

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.

Dow Theory

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.

Bollinger Bands

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.

Moving Average

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.

Conclusion

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.

Pivot Points

Name S3 S2 S1 Pivot Points R1 R2 R3
Classic 0.03469 0.03885 0.04393 0.04808 0.05316 0.05731 0.06239
Fibonacci 0.03885 0.04237 0.04455 0.04808 0.05161 0.05379 0.05731
Camarilla 0.04648 0.04733 0.04817 0.04808 0.04986 0.05071 0.05156
Woodie’s 0.03517 0.03909 0.04441 0.04832 0.05364 0.05755 0.06287

Technical Indicators

Name Value Action
RSI(14) 48.297 Neutral
STOCH(9,6) 53.934 Neutral
STOCHRSI(14) 60.974 Buy
MACD(12,26) -0.004 Sell
ADX(14) 29.160 Sell
Williams %R -52.151 Neutral
CCI(14) 49.1498 Neutral
ATR(14) 0.0080 Less Volatility
Highs/Lows(14) 0.0003 Buy
Ultimate Oscillator 50.555 Neutral
ROC 40.353 Buy
Bull/Bear Power(13) 0.0057 Buy