Exclusive BCH Breaks Out From Long-Term Resistance, Can It Reach $1,000?

Share Article
In Brief
  • BCH has broken out from a long-term descending resistance line.

  • BCH is facing minor resistance at $530 and strong resistance at $1,160.

  • BCH/BTC is facing resistance at ₿0.026.

  • promo

    Free Cloud Mining Providers to Mine Bitcoin in 2021

The Trust Project is an international consortium of news organizations building standards of transparency.

The Bitcoin Cash (BCH) price has broken out from a long-term descending resistance line and has validated it as support afterwards.

Sponsored



Sponsored

BCH should continue increasing towards $850 and possibly $1,150, with the rate of increase likely to accelerate once it closes above $530.

Long-Term Breakout

BCH had been following a descending resistance line since Aug. 2018. After three unsuccessful breakout attempts, it finally moved above it in Jan. 2021.

Sponsored



Sponsored

Afterward, it returned to validate the line as support (shown with the green arrow) and has been increasing since. Technical indicators are bullish, despite the RSI showing decreasing momentum.

If BCH continues moving upwards, the next closest resistance area would be at $1,161, the 0.618 Fib retracement level of the most recent downward move, which is also a horizontal resistance area.

Chart By TradingView

Current Movement

Cryptocurrency trader @Cryptowhitewalk outlined a BCH chart, stating that he is currently adding to his bags due to a breakout from a short-term descending resistance line.

Source: Twitter

The daily chart shows that despite the ongoing rally, BCH faces resistance at $530, which is the 0.618 Fib retracement level of the most recent downward move.

Nevertheless, technical indicators are decisively bullish, evident by the bullish crosses in both the MACD histogram and Stochastic Oscillator.

Once it clears the first $530 resistance area, there is minor resistance at $630, created by the Feb. 10 highs. After this, there is virtually no resistance all the way to the previously outlined $1,160 area.

Chart By TradingView

Wave Count

The wave count suggests that BCH is in wave three (white) of a long-term bullish impulse that began all the way in Dec. 2018. The sub-wave count is given in orange, indicating that it has just begun sub-wave five.

The most likely target for the top of this move is located between $853-$857, found by the 1.61 length of wave one (white) and the projection of the length of sub-waves 1-3 to the bottom of sub-wave 4 (orange).

Chart By TradingView

BCH/BTC

The BCH/BTC chart is not as bullish as its USD counterpart. BCH/BTC has been steadily decreasing since Mar. 2019, and reached an all-time low price of ₿0.010 on Feb. 8.

Technical indicators show some bullish reversal signs, most notable in the bullish divergence in the RSI and bullish cross in the Stochastic Oscillator.

However, until it manages to reclaim the ₿0.026 resistance area and break out from the potential descending resistance line (dashed), the trend is still bearish.

Chart By TradingView

Conclusion

To conclude, BCH/USD should move upwards towards $1,161, with the rate of the increase likely to accelerate once it clears the $530 resistance area.

Despite showing bullish reversal signs, the BCH/BTC trend isn’t bullish until it has reclaimed the ₿0.026 handle.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo. In 2019, he decided to focus full-time on cryptocurrencies and trading.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Token which expects a significant increase in price

Read now

Market signals, studies and analysis! Join our Telegram Today!

Go