The Bitcoin Cash (BCH) Price Breaks Out of Corrective Pattern
The price of Bitcoin Cash (BCH) has been on the rise since August 17, breaking free from a corrective pattern. While the weekly timeframe readings are uncertain, the daily readings indicate that the price increase will likely continue towards a new yearly high.
Bitcoin Cash Bounces Before Range Low
An analysis of BCH’s price movement on a weekly basis reveals that in January, the price broke free from a long-standing descending resistance line that had been in place for over 600 days. However, BCH struggled to maintain its upward momentum after the breakout. It wasn’t until June that it experienced a significant surge, reaching a new yearly high of $329. Unfortunately, the price has since declined and confirmed the $300 level as the main resistance.
If this downward trend continues, the nearest level of support can be found at $150, representing a 25% decrease from the current price. Conversely, to return to the $300 range, BCH would need to increase by 50%.
BCH Price Prediction: Wave Count Suggests Bottom Is In
A closer analysis of the daily time frame provides a mostly bullish outlook for BCH. The Elliott Wave Count suggests that BCH has started its fifth and final wave of upward movement. This fifth wave began after bouncing at the 0.618 Fib retracement support level at $180 on August 17.
If this wave count is correct, BCH’s price is expected to reach a high between $375-$425. This area is determined by a horizontal support area and the 1.61 Fib extension of wave four. The count is supported by a breakout from a descending parallel channel containing wave four movements.
However, failure to sustain the price increase could lead to a 25% drop in the $150 horizontal support area, invalidating the bullish count.
Hot Take: Bitcoin Cash Poised for Bullish Movement
The price of Bitcoin Cash (BCH) has broken out from a corrective pattern and is showing signs of bullish movement. The weekly timeframe is uncertain, but the daily readings suggest that BCH will continue its upward trajectory towards a new yearly high. Technical analysis indicates that BCH has entered its fifth and final wave of upward movement, with a potential price target between $375-$425. However, failure to sustain the price increase could result in a significant drop. Overall, BCH appears to be in a promising position for further growth in the crypto market.
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