Key Takeaways
Bitcoin Cash (BCH) is testing a seven-year resistance after rallying 100% since April.
BCH also shows bullish signs against Bitcoin (BTC), which could lead to outperformance for the rest of the year.
This Bitcoin Cash technical analysis explains why a parabolic rally may be imminent.
The weekly time frame BCH chart analysis shows a decrease under a descending resistance trend line since the all-time high of $4,300 in December 2017.
Until now, the BCH price has made three unsuccessful breakout attempts (red icons) and is gearing up for the fourth one.
The wave count shows a completed A-B-C-D-E structure, which means the correction could be over.
If this is the case, the BCH price will break out from the resistance and increase parabolically since the trendline has existed for seven years.
If a BCH breakout occurs, the closest resistance level is $1,500.
Technical indicators substantiate the bullish Bitcoin Cash analysis. The Relative Strength Index (RSI) increased above 50 while the Moving Average Convergence/Divergence (MACD) crossed into positive territory (black circles).
Both are positive signs that suggest a Bitcoin Cash price breakout from the 7-year trendline is likely.
Besides the BCH to USD pair, the BCH price has a bullish chart analysis against BTC.
The chart shows a deviation below the ₿0.0040 horizontal support area, followed by an upward movement.
After the BCH price reclaimed ₿0.0040, it broke out from a descending resistance trend line, confirming the end of its downward trend.
Shortly afterward, the RSI increased above 50 while the MACD made a bullish cross, verifying the breakout was legitimate.
If the rally continues, the BCH price could increase to the next resistance at 0.0068.
The technical analysis for Bitcoin Cash gives a bullish prediction against USD and BTC.
The BCH to USD chart is ready to break out from a 7-year downtrend.
BCH to BTC, one has reclaimed a long-term support level.