BCH Technical Analysis

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Bitcoin Cash has been posting solid gains lately. As of the writing of this article, Bitcoin Cash’s chart shows that the coin’s current price is trapped between the $200 to $280 price ranges. But when buyers inevitably force a breakout above the range, then a large directional move is assured to take place. 

In regard to the medium-term price trend, Bitcoin Cash has been focused on overpowering the sellers hauled up at the $250 price level after successfully tacking the resistance at $240.

That said, a temporary high has already been attained at $245 and that has momentarily put a stop to the currency’s bullish momentum. On the other hand, the coin is also trading above the 50-day simple moving average (SMA), which is a key indicator that buyers aren’t done with the upside.

At this point, it’s apparent that a break through the 2nd resistance zone ($250 mark) and 200-day SMA at the 3rd resistance zone ($270) will give the upward momentum the boost it requires to shoot past $300. 

Bitcoin Cash traded close to the $500 mark in February 2020 and it is still showing potential to recover to those higher levels. Wait… Are you feeling lost on technical ground?

If you’re not familiar with how to execute technical analysis, here’s what you need to know. The analysis can be divided into two different categories, namely the quantitative form and the qualitative form. 

The quantitative form will allow you to analyze past charts through a time frame analysis and construct trading signals, whereas the qualitative involves analyzing charts and trying to identify data patterns.

The main thing that sets the two apart is that, when using a specific trading rule, qualitative technical analysis is completely subjective and traders might reach different conclusions after using the same chart, but quantitative technical analysis is objective and each trader should reach the same conclusion. 

Before moving forward, here are some of the most popular technical indicators out there. The Bitcoin Cash BCH price predictions below use a combination of these to determine a possible price.

  • Moving average (MA)

  • Exponential moving average (EMA)

  • Stochastic oscillator

  • Moving average convergence divergence (MACD)

  • Bollinger bands

  • Relative strength index (RSI)

  • Fibonacci retracement

Even though technical analysis is extensive, it’s not always enough. You’ll be at a bigger advantage if you use fundamental analysis as well and pay attention to news forums and streams. 

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