See More

Will Bitcoin Cash Break out Above Its Long-Term Trading Range?

2 mins
Updated by Adam James
Join our Trading Community on Telegram
In the period from December 26 to January 10, the Bitcoin Cash (BCH) price increased by 30 percent, reaching the resistance of the trading range inside — which it has been trading inside for the past six months.
However, the bullish momentum has stalled since and the BCH price has been consolidating inside this resistance area, failing to break out above it. Trader @imBagsy outlined a BCH price chart, giving four reasons why he is bullish. The reasons are:
  1. Proximity to halving.
  2. Fourth touch of the resistance area.
  3. Significant bullish divergence.
  4. Growing in volume.

Bitcoin Cash Trading Range

The BCH price has been trading in a range between ₿0.026 and ₿0.033 for the past 187 days, since July 9. It reached the support area on December 26 and began a bullish move that transpired in three upward intervals, taking it to the resistance area on January 10. We stated that the Bitcoin Cash price will reach this resistance area in our previous analysis and discussed the possibility of the price breaking out. Bitcoin Cash Trading Range

Current Breakout

The upward move beginning on December 26 has transpired in five waves, three of which have been upward while two of them corrective. The most common price action after this type of upward movement is an A-B-C correction. The possibility of correction is strengthened due to a variety of factors such as the ascending resistance line, horizontal resistance area, and bearish divergence in the daily RSI. However, the January 10 candlestick was a bullish engulfing and the price has not created any reversal candlesticks since. In addition, even if a correction transpired, it will likely be a short-term retracement inside a longer-term upward move. Therefore, attempting to initiate a short at the current level would be counter-trend trading, since we believe the longer-term trend is bullish. BCH Elliott Wave Nevertheless, we will still outline this possibility. The area which is expected to offer support after this hypothetical correction is found at ₿0.03. So, the BCH price could increase to a maximum of ₿0.035 before correction to our support area. The creation of a bearish candlestick, such as the shooting star, would confirm that the price will reverse. On the other hand, an increase above ₿0.035 would likely mean that the price has broken out and will continue increasing without experiencing a retracement. BCH Ascending Resistance To conclude, the BCH price has reached a significant resistance area. We believe the price will eventually break out and head towards ₿0.065. Prior to the breakout, we are not discounting the possibility of a short-term correction towards ₿0.03.
Top crypto platforms in the US | April 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored