Bitcoin Cash (BCH) Price Breaks $500 After 167 Days — $700 in Sight

Key Takeaways

• The Bitcoin Cash (BCH) price increased by over 50% in November.
• BCH trades at a confluence of horizontal and Fibonacci resistances.
• Can BCH break out and reach its yearly high price of $719?

The Bitcoin Cash (BCH) performance in 2024 has been lackluster. While BCH started the year with an upward movement, it has fallen sharply since its yearly high of $719 in April.

Nevertheless, BCH is the biggest gainer today, increasing 17%. Let’s analyze the BCH price action and see if it can build on this momentum and increase toward its yearly high.

BCH Price Bounces

The weekly time frame BCH chart shows that the price has increased alongside an ascending parallel channel since June. Both the support and resistance trend lines have been validated numerous times since.

In August, the price bounced at the channel’s support trend line and the $305 horizontal support area, creating a long lower wick (white arrow).

Since then, it has slowly climbed alongside the support trend line before finally making a bullish engulfing candlestick at the start of November, beginning the current upward movement.

The BCH price reached a high of $524 today, the highest in 167 days. If the increase continues, the channel’s midline is at $700.

Technical indicators support the upward movement. The Relative Strength Index (RSI) is moving upward and is above 50. The Moving Average Convergence/Divergence (MACD) also climbs and has made a bullish cross (black circle).

So, the weekly time frame suggests the BCH trend is bullish, and the price will continue increasing.

BCH Price at Resistance

The daily time frame chart shows that BCH broke out from a descending resistance trend line on Nov. 9, accelerating the upward movement. Before the breakout, the trend line had existed for 210 days.

Currently, the BCH price trades inside the confluence of resistance at $495-$515. This area is created by horizontal resistance and the 0.5 Fibonacci retracement level. If the price breaks out, it can gradually increase toward its yearly high of $719

The daily RSI and MACD predict a breakout since they increase and exceed their bullish thresholds.

Finally, the wave count is also positive, aligning with the bullish weekly and daily time frame readings. The most likely wave count suggests BCH has completed a five-wave increase and an A-B-C correction afterward (black).

According to the wave count, the next increase will have at least the same length as the previous one. If this happens, the BCH price will reach a high of $917. However, the yearly high region of $719 will likely provide temporary resistance and could act as the top of wave three.

It is still unclear if the ongoing increase is part of a longer-term wave C or wave three. Once the BCH price gets to $917, the reaction will help determine the correct count.

Bullish Trend Reversal Underway

After creating several higher lows since August, the BCH price has finally started its bullish trend reversal.

The Bitcoin Cash analysis is bullish in multiple time frames, and the wave count gives a target of $917 to top the increase. Temporary resistance is at $719.

About the Author

Valdrin Tahiri

Valdrin discovered cryptocurrencies while getting his MSc in Financial Markets from the Barcelona School of Economics in 2017. He has been an avid investor and trader since. Valdrin has written for several cryptocurrency media companies such as BeInCrypto and CoinGape.

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