Is Bitcoin Cash (BCH) Price To Rise Above $300?
The price of Bitcoin Cash (BCH) has not traded above $300 in over 190 days, but now it is trying to do so.
The price moves in a short-term correction pattern and a long-term horizontal resistance area.
Bitcoin Cash is highly volatile.
The weekly time frame technical analysis shows that in early 2023, the BCH price rose after breaking out of the long-term descending resistance line.
The price of BCH made a new low in June and accelerated its growth to reach $329 during the month. The top still stands.
After a brief decline, BCH has shown persistence by breaking through a horizontal support area (green icon) and has now attempted to go above the previous highs (red icon).
The weekly RSI gives a mixed reading. The RSI is a momentum indicator that traders use to determine whether the market is overbought or oversold.
A reading above 50 and an upward trend indicates that the bulls are still in advantage, while a reading below 50 indicates the opposite. RSI is rising and above 50, both bullish signals. However, the indicator may form a bearish divergence based on the weekly close, which is considered a sign of weakness.
Read more: How to buy Bitcoin Cash (BCH)?
BCH Price Prediction: When will BCH return to $300?
Similar to the weekly time frame, the daily does not determine the direction of the trend. This is due to price action.
Since August 2023, BCH has traded in an ascending parallel channel. These channels often contain corrective movements, which means that breaking out of them is very likely.
Read more: 8 Best Bitcoin Cash (BCH) Wallets
However, BCH price is showing persistence by entering the upper part of the channel. It is currently trying to break out of the resistance trend line. Bill Noble believes this strength comes from the validation of the Bitcoin (BTC) ETF.
The daily RSI has shown bullish signs after crossing above 50. Therefore, whether BCH price breaks out of the channel or rejects it will determine the direction of the future trend.
A breakout could trigger a 35% rally to the next long-term resistance at $390. However, if rejected, BCH could fall 20% to the support trend line of the channel at $230.
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Disclaimer
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