Analyst: Bitcoin Cash May Move Higher Unless Loses Key Support

Analyst: Bitcoin Cash May Move Higher Unless Loses Key Support

The fourth largest cryptocurrency Bitcoin Cash (BCH) may move higher towards ₿0.053 provided that it does not lose its key support at ₿0.039 any time soon, said cryptocurrency analyst @imBagsy.

On January 14, BCH broke through the trading range it has been maintaining since July 2019. The cryptocurrency was moving up and down between ₿0.026 and ₿0.0325 in a row.

After breaking the above-mentioned price, BCH moved to the next resistance at ₿ 0.045 but failed to consolidate. Therefore, a technical candle was formed, paving to a potential downward trend.

The cryptocurrency has been moving down since hitting its peak of ₿0.045 on January 18, forming a symmetrical triangle. This indicates that the price would see a new upward trend.

Despite these bullish signs, BCH is still trading below the moving averages which have not been confirmed as support. Therefore, it would not be a surprise if the cryptocurrency re-test the support, as this is a normal movement after any breakout.  

Moreover, BCH has formed many upper wicks since the date of breakout, signaling the selloffs which indicate that the price would correct to validate the above-mentioned moving averages.  

Any decline near the support level at ₿ 0.038 , and this will help verify the above-mentioned moving averages.

As for the future trend, BCH would break through the symmetrical triangle. Since December 25, the relative strength index (RSI) has been above 50, signaling a bullish pattern.

Cryptolydian earlier reported that Bitcoin Cash House, which is the brainchild of Roberto Garcia, will launch a new hub late this month in Ghana, which reflects the country’s interest in the crypto industry..

BCH ecosystem saw a great level of development during 2019, starting from infrastructure to merchant adoption. BCH chain has undergone two upgrades, which improved its overall functionality. Furthermore, BCH’s popularity seems to be growing in regions such as Venezuela, where it is accepted by more shops and businesses than Bitcoin.

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