Bitcoin cash (BCH) has been showing signs of reversals through a descending on a downtrend. In this analysis, we take a look at Bitcoin Cash's technical evidence to assess its probabilities.
- To begin with, we can notice extremely extended divergences on the daily, as prices form lower lows and indicators form higher lows
- The ( ) shows a steady increase over time, demonstrating increasing trend strength
- The Moving Average Convergence Divergence ( ) also forms higher lows and higher highs as a sign of momentum
- The indicator also contributes to the formation on the daily, adding weight to a case
- Counting within the descending , we can count triangle waves (ABCDE) leading to a breakout
- The Ribbons are converging, looking to form a potential golden cross
- We have managed to close above the 0.5 resistance, providing confirmation of a breakout
- Bitcoin cash has also managed to close above the resistance for the first time in many weeks, signaling a potential long term trend reversal
What We Believe
We believe that the outlook on BCH is extremely based on a plethora of technicals that point to the same direction. This could potentially be the beginning of a long term trend reversal.