Bitcoin Cash (BCH) Price up 14% but Still Confined to Ascending Channel

Key Takeaways

• BCH holds above ascending channel support.
• A breakout above resistance may confirm the bull cycle.
• Target levels include $450 and near $500

Bitcoin Cash (BCH) has shown a significant upward movement after establishing a support base near $94 from mid-2022 through mid-2023.

This surge led to a peak of $706 in early 2024, forming a five-wave pattern before entering a correction phase.

Recently, BCH has begun moving within an ascending channel, suggesting the potential start of a new bullish cycle, though a breakout above channel resistance is necessary for confirmation.

BCH Price Analysis 

After establishing support, around $94 from July 2022 to June 2023, the price of Bitcoin Cash initiated a bull phase.

It first climbed to a high of $320, and after a pullback, it continued to $706 in April 2024. 

This was likely the completion of a five-wave pattern as the price entered a downturn. In July, it fell to $291 and continued to $272 on Aug. 5, indicating the momentum was slowing down. The 0.681 Fibonacci retracement level was reached. Since then, an ascending channel formed, with the price reaching its resistance again after a 14% increase. 

Considering the previous downtrend’s longevity and the retracement’s depth as a typical ending point for corrective stages, the ascending channel could be the first bullish structure in a new bull cycle.

Further confirmation is needed, which will come after a breakout above the ascending channel’s resistance.

However, a breakout below ascending support would invalidate the assumption if the price gets rejected and sent into a downward trajectory. 

BCH Price Prediction

Zooming into the hourly chart and examining the wave structure, we can see that there might be a possibility that BCH completed the first two sub-waves of the larger five-wave pattern from Aug. 5. 

Although the waves overlap, it could be interpreted as a leading diagonal until the Oct. 14 high of $385, with the following downturn to ascending support at $322 on Nov. 4, its ABC correction.

If this is true, the rise from there is the next five-wave impulse, which should lead to an upward breakout. 

Furthermore, according to this count, the first sub-wave ended at today’s high of $382, and a correction to a higher low of $358 should come next.

Therefore, its next move to the upside will push the price to a high of $450 and continue for one more, just slightly below $500.