BitcoinCash Technical Analysis – October 16, 2019

The BitcoinCash rose on Wednesday, increasing the price of the digital currency to 222.0, following the economic release concerning the consumer sentiment index. The technical bias might remain bearish because the price marked a higher low in the recent upside move.

BitcoinCash Technical Analysis

As of this writing, the Bitcoin Cash is being around 222.0. The price may hit a resistance level at 240.6, the major horizontal resistance level ahead of 269.8, the trend line resistance and then 345.0, the 38.2% Fib level resistance which may restrict the price from increasing further as shown in the graph below.

Coming towards the downside, the price may observe support around 207.9, the confluence of two trend lines, ahead of 135.4, the trend line support and then comes 72.1, the low of December 14, 2018, as shown in the graph above. The technical bias may remain bearish as long as 240.6, the key horizontal resistance remains intact.

US Michigan Consumer Sentiment Index Release

The University of Michigan has recently released stats after conducting a survey. This survey was carried out to find the confidence of consumers showing the true picture that whether or not customers/end consumers are willing to spend. It is to be noted that the Michigan consumer sentiment index is considered as an important factor in determining the future aspects of the country’s economy. Generally speaking, a high reading is considered a bullish trend for digital currency and vice versa.  

Conclusion

Keeping in view the price behavior of the past couple of days, selling BitcoinCash around current levels may be a good decision in the short to medium term. Long term positions might not work.