The Bitcoin Cash (BCH) price has fallen since its yearly high in June. It has nearly reached the $150 horizontal support area.
Despite the decline, the daily timeframe offers hope for the possibility that the price has bottomed and will soon break out.
Bitcoin Cash Price Still Has Not Reached Range Low
The weekly timeframe technical analysis for BCH shows that the price broke out from a long-term descending resistance line in January. Before the breakout, the line had been in place for 623 days.
After initially struggling to sustain its increase, BCH surged in June and reached a new yearly high of $329. However, the price has fallen since. The decrease validated the $300 area as resistance.
If the downward movement continues, the closest support is $150. The support area is 20% below the current price. On the other hand, a 60% increase will be required to reach the $300 area again.
The weekly Relative Strength Index (RSI) gives an undetermined reading. The RSI is a momentum indicator used by traders to evaluate whether a market is overbought or oversold and to determine whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. While the RSI is falling, it is still above 50. These mixed signs make for an undetermined trend.
BCH Price Prediction: Will Price Break Out?
The analysis of the daily time frame provides a mixed outlook. The analysis shows that the BCH price has fallen in a descending parallel channel since the yearly high. These channels usually contain corrective movements. As a result, a breakout from it would be the most likely future price scenario.
On August 17, BCH bounced at the channel’s support line (green icon), creating a long lower wick. Shortly afterward, it reclaimed the 0.618 Fib retracement support level at $181.
According to the Fibonacci retracement levels theory, following a significant price change in one direction, the price is expected to return to a previous price level partially. The 0.618 Fib level is where corrections most commonly end.
If the price holds above it, a breakout from the channel will be expected. In that case, a 60% increase to the $300 resistance area could transpire.
While the daily RSI is decreasing, it is also heavily oversold (green circle), a sign that is associated with local bottoms.
Despite the bullish price prediction for BCH, failure to break out will likely cause a decrease in the $150 horizontal support area. The area coincides with the channel’s support line at the beginning of September, making this a likely time for it to be touched.
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