Bitcoin Cash: In-depth Breakout Analysis 1D (Jul. 26)

26 июл. 2020 г.

X Force Global Analysis:


Bitcoin cash (BCH) has been showing signs of reversals through a descending wedge on a downtrend. In this analysis, we take a look at Bitcoin Cash's technical evidence to assess its bullish probabilities.

Analysis

- To begin with, we can notice extremely extended bullish divergences on the daily, as prices form lower lows and indicators form higher lows
- The Relative Strength Index (RSI) shows a steady increase over time, demonstrating increasing trend strength
- The Moving Average Convergence Divergence (MACD) also forms higher lows and higher highs as a sign of momentum
- The Stochastic indicator also contributes to the bullish divergence formation on the daily, adding weight to a bullish case
- Counting Elliott Waves within the descending bullish wedge, we can count Elliott triangle waves (ABCDE) leading to a breakout
- The Exponential Moving Average Ribbons are converging, looking to form a potential golden cross
- We have managed to close above the 0.5 Fibonacci retracement resistance, providing confirmation of a breakout
- Bitcoin cash has also managed to close above the Ichimoku cloud 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 bullish based on a plethora of technicals that point to the same direction. This could potentially be the beginning of a long term trend reversal.

Trade Safe.