BitcoinCash Technical Analysis – October 22, 2019

BitcoinCash Technical Analysis – October 22, 2019

BitcoinCash inched Lower against the US Dollar (USD) on Tuesday, decreasing the price to less than 300. The price decreases amid major economic release concerning building permits. The technical bias might remain bearish since the price printed a higher low in the recent upside side move. 

BitcoinCash Technical Analysis

As of this writing, the digital currency is being traded around 231.3, the price is likely to hit s support level around 182.5, the trend line support level. Another trend line support may also come across around 152.2,  and then 95.1, the low of  December 19, 2018, may prevent the price from decreasing below this level as shown in the graph below. 

BitcoinCash

Coming towards the upside, resistance may come across around 255.1, the confluence of a trend line and horizontal level ahead of 303.8, the key horizontal resistance and then 353.6, the 23.6% Fib level resistance may resist the price keeping it below the said level as shown in the graph above. The technical bias may remain bearish as long as 255.1. the confluence of a trend line and horizontal level resistance remains unchanged.

US Building Permit Release

The Building Permits released by the US Census Bureau, at the Department of Commerce shows the number of permits for new construction projects. It implies the movement of corporate investments (US economic development). It tends to cause some volatility to the USD. Normally, the more growing number of permits, the more positive (or bullish) for the USD.

Conclusion

Keeping in view the price pattern of the digital currency over the past few days, Buying BitcoinCash around current levels may not be a wise decision in the short to medium term. On the other hand, opening up a long position should also be avoided.  

By Desislava Yunakova
Desi was one of our financial journalist trainee, someone who's now moved on to be a Strategic Analyst at Whirlpool.
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