BCH Price Prediction: Bitcoin Cash Eyes 28% Explosive Move

by

As a seasoned researcher with extensive experience in the cryptocurrency market, I have closely monitored Bitcoin Cash (BCH) for quite some time. Based on my analysis of both the technical and fundamental structure, I am optimistic about BCH’s future price trajectory.

Bitcoin Cash kicks off the week with a modest 0.8% increase, placing its value at around $388 on Monday. According to our analysis of Bitcoin Cash‘s price prediction based on both technical indicators and underlying fundamentals, a significant rally is anticipated, potentially propelling the 16th largest cryptocurrency upwards towards $515.

BCH Price Prediction Ahead Of Key Technical Pattern Breakout

On the four-hour chart, Bitcoin Cash exhibits indications of a technological breach. Nevertheless, for an accurate evaluation of its weekly trends, traders need to consider multiple aspects.

When analyzing the cryptocurrency market, it’s essential to consider several factors that can impact its behavior. Among these are:

Looking at the long-term perspective, the higher timeframes indicate a positive trend for Bitcoins Cash (BCH), potentially reaching prices above $1,000. In contrast, on a day-to-day basis, BCH demonstrates promising growth, with the possibility of surpassing the resistance levels at $400 and $500.

Alternatively, According to CoinMarketCap, Bitcoin’s price is currently holding steady above the short-term support level of $67,000. This comes after a strong recovery from the $64,000 support that was in place just last week.

ShouldBitcoin’s price surpass the $70,000 barrier, the likelihood of initiating a fresh pricing trend for it will significantly rise. Similarly, Bitcoin Cash is projected to mirror Bitcoin’s upward trajectory and advance towards hitting the $1,000 mark.

Based on the analysis of the four-hour chart, there could be an inverse head and shoulders (H&S) pattern emerging, indicating a potential breakout.

In a descending trend, a reversal pattern called an inverted Head and Shoulders emerges. This formation is identified by three successive troughs. The middle trough, or “head,” is lower than the two outer troughs, which act as the “shoulders.” A horizontal line, representing resistance, is drawn through the connection of these two shoulder highs, forming the “neckline.”

For traders, it’s important to be patient and look out for Bitcoin Cash’s price surpassing its neckline by approximately 28%. Such a move signals a possible trend reversal.

After weighing the potential risks, traders may decide to purchase assets above the neckline and set their stop losses just beneath it, expecting the price to increase. Contrary to the typical Head and Shoulders pattern, this approach is employed for recognizing uptrends instead.

What’s Next For Bitcoin Cash As Indicators Turn Bullish?

As a price analyst, I’ve identified potential reversal signs for Bitcoin Cash (BCH) and foresee an inverse Head and Shoulders (H&S) breakout approaching the $515 mark. However, this prediction hinges on several indicators. Firstly, it’s crucial that the golden cross formation we’ve observed on the four-hour chart remains robust. If it does, it will continue to draw traders’ attention and keep them invested in their long positions.

BCH price prediction chart | Tradingview

Starting from the entire American session, Bitcoin Cash’s price behavior could be crucial. There is a possibility that the cryptocurrency may retake its 20-day Exponential Moving Average (EMA), which is represented by the blue line at approximately $390.

As a crypto investor, I closely monitor the price action of my assets. Currently, there’s an important support level at $383 that has been formed by the intersection of two moving averages – the 50-day Exponential Moving Average (EMA) in red and the 200-day Simple Moving Average (SMA) in purple. If the price holds above this confluence support, it could help alleviate selling pressure. However, a break below this level might intensify the downward trend.

Some traders may be enticed to sell Bitcoin Cash (BCH) due to the appearance of a sell signal indicated by the Moving Average Convergence Divergence (MACD) indicator. This could explain why BCH’s price has been slow to rise above the $390 mark.

When the height of the red histograms grows larger, the probability of Bitcoin Cash dropping down to $370 becomes much higher.

If the price forecast for Bitcoin Cash (BCH) lags behind the head-and-shoulders (H&S) breakout, it indicates that bulls are not in the clear yet. A potential drop to the previously established $350 support may occur before BCH can muster enough strength for a more substantial surge.

Read More

2024-07-22 18:54