A leading cryptocurrency analyst has expressed bullish sentiment for an altcoin that is up over 13% in the past week.
According to the analyst, who goes by the pseudonym DonAlt, technical indicators on BCH’s daily charts are pointing to a potential uptrend. This indicates that there is a possibility that BCH will move towards higher prices in the coming days or weeks.
“If you go to lower time frames that look like a breakout point…
You can see that the structure here is kind of like an ascending triangle, whatever you want to call it, it doesn’t really matter… The only thing you really have to keep in mind or that matters to the trade is that it hit a low, retested that and now it’s hitting the same highs higher low (a “creating a new low level higher than the previous low level.”
The analyst does not ignore situations that may invalidate the bullish thesis. According to DonAlt, a drop below $200 or $180 will invalidate the bullish move for the altcoin, with DonAlt specifically underscoring $180.
On the other hand, DonAlt states that the price movements of BCH as well as other altcoins generally depend on Bitcoin. This means that major changes in Bitcoin’s price often have significant impacts on altcoins. Therefore, when the price of Bitcoin rises, altcoins generally experience an increase, while when the price of Bitcoin decreases, it is often observed that altcoins also lose value.
“My problem with altcoins is, what makes me think about my Bitcoin Cash investment is, I look at Bitcoin and I’m like, ‘if this breaks down, like if this goes down, I’m screwed and everyone else in altcoins is screwed, too.’”
Bitcoin Cash is trading at $238 at press time.
You can follow the current price movement here.