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A few days ago, we said that Bitcoin Cash looked ready to soar as risk-appetite had picked up, and stock markets had stabilized. At that time, Bitcoin Cash (BCHUSD), was trading at 236.4 dollars per coin, today the price is trading at $260, up by 9.9%.
The outlook for Bitcoin Cash and other cryptocurrencies remains favorable over the next few days as the Coronavirus scare is slowing. Figures from Italy showed that the daily change in new coronavirus infections declined to 2.8%, in France, the daily growth rate was 6%, while it was 3.2% in Germany, and 9% in the USA. Overall, the number of new cases has dropped sharply over the last few weeks, causing some countries to plan how they can return to normal.
Austria, Denmark, and Czechia are looking to reopen their economies, much like China already has. Austria plans to allow smaller shops open on April 14, followed by malls and bigger shops, and hairdressers on May 1, while restaurants and hotels will need to wait until mid-May before the can open.
I think more countries will soon follow as the toil on the economy will be too big if they delay, and they will see the risk-reward for opening vs. dealing with new infections as good. It is because of this that stocks and Bitcoin Cash is gaining. Placing this trend at risk is if the economic reports keep on disappointing.
From a technical point of view, the trend remains bullish in Bitcoin Cash, and the price has still not reached the Ascending triangle pattern objective at $276.9. If the price declines and reached the upper limit of the pattern, the horizontal resistance level at $237.2, I think people will buy, and remain bullish as long as the price trades above the April 5 low of $222.8. However, on the price trading below the April 5 low, the price could have turned bearish, and BCHUSD could reach the March 23 low at $198.
Time will tell what happens next, but with important reports such as the Markit PMIs, the US NFP, and US ISM behind us, market volatility will probably be slow if it was not for US Jobless claims which will probably show on Thursday that the US lost another 5.25 million jobs. However, it is essential to note that as long as the US lockdown does not extend too much, then most of these jobs will be reinstated.
Bitcoin Cash Chart
By Alejandro Zambrano, Chief Market Strategist at ATFX.
