A thorough technical analysis of Bitcoin Cash couldn’t be more important for the cryptocurrency right now. Following a move to delist Bitcoin Cash (BCH) from the SBI Holding’s exchange, the BCH starts to show overbought sentiments as you’ll later see in the daily chart analysis of this article, the latest in our technical analysis series…
Technical Analysis: Bitcoin Cash
BCHUSD Monthly Chart
Bitcoin Cash (BCH) from a monthly time frame plummet by about 82.11% after signalling a double bearish accumulation on September and October 2018. Although signs of a bottoming out were not clear last month, the current month of April already threatens the bearish accumulation resistance of 174.99, confirming a breakout of bearish accumulation. A close of the current month above this resistance level will confirm the pattern and signal a change in trend from bearish to bullish.
BCHUSD Weekly Chart
A bird’s eye view from the weekly time frame confirms the bottoming of the BCHUSD as the pair triggers a bullish regular divergence from a golden cross of the MACD (9, 21, and 5). The initial bullish rally retraced a bit before flagging a sequence of double bullish accumulation on 4th March 2019, followed by a breakout of bearish accumulation on 11th March 2019 with established support at 115.93.
BCHUSD Daily Chart
The retracement on the weekly chart was terminated by a bullish regular divergence in combination with a breakout of bearish accumulation on 30th January 2019. From that point onward, every attempt by bears to force the price south failed to more bullish pressure on 18th February 2019, 14th, 23rd and 27th March 2019 respectively.
On the 9th and 19th April 2019, the chart shows an overbought BCH, by triggering a breakdown of bullish accumulation, which may transition into a range.
BCHUSD 4-HOUR Chart
It has so far been a rollercoaster motion looking at the 4-Hour chart of the BCHUSD. Starting with a bullish Fakey on 6th April 2019 12:00, followed by an opposing breakdown of bullish accumulation on 8th April 2019. The swing continued after an opposite breakout of bearish accumulation was signaled on 12th April 2019 and recently a bearish accumulation pattern on 16th April 2019 12:00.
BCHUSD 1-HOUR Chart
From an intraday point of view, the 1-Hour chart appears to agree with the daily chart view of an overbought BCH by triggering bearish divergence patterns in the sequence, on 16th and 18th April 2019. A breakdown of bullish accumulation in combination with a bearish accumulation signalled on 18th April 2019 22:00 resulted in a 5.32% price decline.
Critical Resistance Levels of Bitcoin Cash (BCH)
321.0, 314.50, 310.91, 313.20
Critical Support Levels of Bitcoin Cash (BCH)
284.57, 258.37, 293.17
104.80, 119.01, 125.10, 145.81, 152.50
Conclusion and Projection for Bitcoin Cash
Following a 171.61% increase in the price of Bitcoin Cash, the negative news in the form of removal from the exchange of the Japanese financial service SBI Holdings brings uncertainty in the price chart of the BCH as the pair shows signs of weak bullish sentiment.
An update to the 1-Hour chart today revealed a breakout of bearish accumulation setting up strong support at 290.00. Not too long after the bullish thrust – and attaining a height of 313.20 – the pair starts to threaten a break of bullish accumulation on 19th April 2019 19:00. Again, this is an indication of weak bulls on the BCHUSD exchange.
Feel free to look through more of our April Technical Analysis like: Technical Analysis of Binance Coin BNBUSD April 28, 2019 and/or Technical Analysis of Ripple (XRPUSD): April 2019.