BCH Price Analysis: With Sellers Back In The Ring, Will Bitcoin Cash Cross $300?
Qadir AK10 Aug 20231 min read
Bitcoin Cash price action shows a falling channel pattern after facing extensive selling pressure above $300. The falling trend takes support at the 50-day EMA and the 23.60% Fibonacci level accounting for a drop to $220.
However, the correction phase is part of a bullish flag pattern following the 200% jump in late June. Therefore, the bullish breakout fo the resistance trendline will unleash a new uptrend surpassing the $300 mark.
With the 6.63% jump on 7th August, the BCH price action completes the positive cycle, thanks to the bullish confluence of the 23.60% Fibonacci level and the 50-day EMA. The increase in trading volume projected a potential breakout, but the higher price rejection prolongs the bear trend.
Following a couple of Doji formations, the BCH coin price falls by 1.70%, leading to a morning star pattern. This increases the possibility of negative cycle teasing to a potential drop to $210.
Despite this, technical indicators continue to predict a positive outlook for Bitcoin Cash in August. The MACD indicator is preparing for a bullish crossover on the daily chart, and the RSI line is showing an uptick from the halfway line, which presents a similar opportunity.
Optimistically, a daily candle closing above the falling channel will signal a new bull cycle in Bitcoin Cash. Traders can expect the refreshing spree to challenge the previous swing high of $307.
On the flip side, a downfall continuation will test the bullish dominance at the psychological mark of $200.
