Like almost all large cap altcoins, Bitcoin Cash (BCH) has lately been looking for a bottom of its retracement after the volatile H1 season of 2019, on its Bitcoin-paired chart. And like the others, there is a serious case to be made that a bottom has been laid.
We start with the daily chart for the big picture. There is a lot of health on this chart, as the RSI is seeing multiple bull divergences on price lows (on the candle bodies). The MACD is trending hard toward the centerline, running about parallel now; with the histogram riding almost flat on the positive side.
The exponential moving averages (EMAs) are being slowly retaken, and the 55-day EMA forms the top side of this market. If this keeps up we can easily imagine a breakout soon-ish from the first resistance level, sitting at about ₿0.034.
The 2-day chart on the BCH/USD pairing, however, is less encouraging. We see that BCH is struggling to stay above support surrounding $285, although there is a whiff of an uptrend. RSI was kicked out of the top side of the range in early July here, and an uptrend to break back into it was squashed in early August.
The histogram here looks like it could fall back negative at any moment, after a deep period of downside that probably wants more time to shake out.
BCH’s price, of course, has a lot to do with Bitcoin’s price. If we do have a bottom on BCH/BTC, BCH/USD price is likely to be flat at worst, and uptrending at best, depending on what Bitcoin does after its current season of consolidation.
As far as short term price action, there doesn’t seem to be a big opportunity here: volatility after the early August dump-and-bounce is low. The 4-hour indicators mostly look tepid, but if BCH keeps respecting an uptrend, we could see a safe trade up to ₿0.0329.
To conclude, Bitcoin Cash looks better on its BTC pairing than on its USD pairing, which may be useful information for margin traders seeking alpha. This means that BCH may well remain flat on USD even if Bitcoin sees downside in the coming weeks and months, or even make some gains. Things are rather quiet at the moment, however, so traders have plenty of time to plan setups.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
