Throughout the past week, the Bitcoin Cash (BCH) price has bounced at the $600 support level and increased considerably.
Bitcoin Cash is expected to continue increasing towards at least $850 and could potentially move higher after.
Long-Term Bitcoin Cash Levels
The weekly chart shows that BCH increased considerably during the week of Feb. 8-15 to reach a high of $754. This is the highest market price for BCH since July 2018.
Despite the increase, BCH is still considerably below the main resistance area at $1,160. This is both the 0.618 Fib retracement level of the previous downward move and a horizontal resistance area. If successful in moving above it, the next resistance level would be found at $1,840.
Despite a bearish divergence in the weekly RSI, both the MACD and Stochastic Oscillator are moving upwards. The RSI is still trending above 70.
The trend appears to be bullish and BCH should likely reach the $1,160 resistance area.
Cryptocurrency trader @TheEuroSniper said that BCH has been lagging behind heavily and should soon catch up to the rest of the market, They outlined a significant resistance area near $1,600. The level is found between the two resistance areas we outlined above.
The daily chart also supports the continuation of the upward movement. It shows a breakout from the $600 resistance area and its subsequent validation as support on Feb. 15. It left a very long lower wick following this.
The MACD, RSI, Stochastic oscillator are all increasing, indicating that the trend is bullish and BCH is likely to move higher.
Wave Count
The wave count suggests that BCH is in wave three (white) of a long-term bullish impulse that began in December 2020.
The sub-wave count is shown in orange and suggests that BCH is in the fifth and final sub-wave.
The most likely target for the top of this move is located between $850-$860. This range was found using the 1.61 length of wave one (white) and the lengths of sub-waves 1-3 projected to the bottom of the fourth (orange).
BCH/BTC
The BCH/BTC chart shows that the price has been following a descending resistance line since March 2019. Currently, the line coincides with the ₿0.025 resistance area. As long as BCH is trading below this line, we cannot consider the trend bullish.
However, technical indicators are suggesting that a trend reversal is likely. The weekly RSI has generated a considerable bullish divergence, the Stochastic oscillator has made a bullish cross, and the MACD histogram has just crossed into positive territory.
Therefore, BCH is expected to increase towards ₿0.025 and potentially break out. If so, the next resistance area would be found at ₿0.046.
Conclusion
Bitcoin Cash is expected to continue increasing towards $850 and could potentially break out above that after.
BCH/BTC is expected to increase towards ₿0.025 and potentially break out to attack the ₿0.046 level.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here
Disclaimer
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