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Bitcoin Cash (BCH) Technical Analysis – Nothing Good Happens Below The 200 Day Moving Average

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After bottoming out in early April at the 600 level, Bitcoin Cash (BCH) put in a spectacular run for the roses appreciating three-fold topping out earlier this month at 1849. Yet has since found the going challenging and once again trading below its 20 (yellow line) and 200 (red line) day moving averages, while BCH attempts to hold the line at its 50DMA (blue line) as we can witness in the Chart below:

As we can observe from the daily chart above, BCH finds itself trading beneath its 20 and 200DMA’s and attempting to maintain its 50DMA. In addition, we can also see that BCH presently resides in a former congestion zone from the February through early March time-frame within the shaded area acting as potential support.

While BCH has yet to violate short-term support located at the 1128 level, when weighing all of the evidence taking place, such as trading below both its 20 and 200DMA’s as well as the overall market climate, the likelihood of BCH breaching its 50DMA and testing the 1128 figure remains a viable possibility and probability particularly with cryptocurrency conditions as slippery as they are at present.

When zooming-out to the Weekly Chart above, we can also observe that BCH is trading within a triangle formation and perhaps more importantly, just how critical the 1128 potential support level is as it dates back to the week of 11/20/17.

Taking all of the above into consideration, both the action on the daily and weekly time-frames (charts), both investors and traders alike may want to pay close attention to the action in BCH moving forward.

With that said, let’s take a closer look at specific levels that may provide further clues/evidence in order to ascertain which direction BCH may have in store in the forthcoming days/weeks ahead.

If, at any time in the days ahead BCH is unable to hold its 50DMA, which as of this writing, finds itself ticking slightly below, the probability of a test at the aforementioned potential support level of 1128 would certainly come into ‘play’.

Should the 1128 level ‘give way’ at any time in the days/weeks ahead, such development, should it materialize, would be extremely concerning as that would likely set the stage for a possible move into Tier II support, which can be found at the 950-1000 zone.

However, should BCH be capable of holding both its 50DMA (1162) and staving off a test of the 1128 level as well and can turn the tides north, a move that clears the 1313 and perhaps more importantly, the 1357 figure, would surely be an encouraging step from a short-term perspective, in righting the ship.

Nevertheless, BCH presently finds itself, as do many in the cryptocurrency universe, at a key inflection point attempting to stem the bleed lower. As the saying goes, “Nothing good happens below the 200-day moving average”, and that’s precisely where we find numerous names presently residing.

Happy Trading!!

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels

Charts courtesy of tradingview.com

Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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Altcoins

3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance

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For more than a year, the cryptocurrency market has been dominated by bearish influence, with most coins seeing constant drops, or stagnation, at best. This all changed in the past few months, starting with Bitcoin which once again started leading the market up, bringing one minor rally after another.

BTC itself experienced massive losses in 2018, with its price going down by around 84%. Most other coins among the top 10 mirrored its performance, and some of them experienced even greater losses. However, now that Bitcoin sees gains again, these cryptocurrencies are still following its example, and many of them have seen massive breakouts. Some of the more notable altcoins that followed Bitcoin’s recent example are Ethereum (ETH), Stellar (XLM), and Cardano (ADA).

Ethereum performance mirroring Bitcoin’s price

As mentioned, Bitcoin led every rally so far, but before it did, its price first went through what is known as an ascending triangle pattern. The pattern held for around five months, which is exceptionally long for the crypto world. However, once the pattern was finally broken — the coin’s price skyrocketed, more than doubling itself within only two months.

One thing to note is that Ethereum performed in pretty much the same fashion. After five months of struggle and confusion for investors, the second largest cryptocurrency also managed to break the pattern and skyrocket as well. It…

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Bitcoin

4 Reasons Why the New Bitcoin Rally Is Unlikely to Stop Now

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After more than a year of declining prices, the crypto market is finally seeing a period of serious recovery — one that has already brought digital currencies to heights not seen in over half a year now.

Only days ago, Bitcoin surged past several major resistance levels and managed to exceed its yearly high of over $8,000. Already, many skeptics are predicting the soon end of the bull run, and the possibility of yet another sharp decline. However, there are signs that suggest otherwise — that this bull run is only getting started, and that it will not end anytime soon.

There are four reasons why this is the case, and they are as follows:

1) Bakkt

There is the long-awaited Bitcoin futures exchange, Bakkt, which recently announced that the July test date for Bitcoin futures is soon to be set. Bakkt’s launch was delayed multiple times already, so the announcement came as quite a surprise. However, it appears that it will happen quite soon, after all.

As soon as its arrival becomes a certainty, Bitcoin will likely skyrocket even further, just like gold did when gold ETF appeared in 2013.

2) Bitcoin completely ignored the hacking of Binance

Binance has been the largest crypto exchange by trading volume for a while now, and as such, many expected that, if anything were to happen to it, Bitcoin…

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