Bitcoin Cash (BCH) Price Jumps 15% — Next Target at $500

Key Takeaways

• Bitcoin Cash (BCH) bounced at a long-term parallel channel.
• The BCH price is breaking out from a shorter-term channel.
• Can BCH finally break out and gradually move toward $500?

Bitcoin Cash has traded without much volatility since the beginning of July. This was especially notable after the bounce on Aug. 5, which caused the price to contract in a range between $290 and $366.

However, this changed on Aug. 14, when the BCH price increased by 15% in a single day, reaching the resistance trend line of its pattern.

Is this increase a sign of things to come, or will Bitcoin cash fail to break out and continue ranging? Let’s find out

Bitcoin Cash Begins Recovery

The weekly time frame Bitcoin Cash price chart shows that since May 2023, BCH has traded inside a long-term ascending parallel channel. After the resistance trend line was rejected in April, BCH started to fall and reached the support trend line in August.

The ensuing bounce was critical since the channel’s support coincided with the $300 horizontal area.

This is one of the most important horizontal levels in Bitcoin Cash’s price history, as it has acted as both support and resistance since 2020 (black and white arrows).

The BCH price has traded above it in bullish periods and vice versa. Since then, it has traded close to the channel’s support trend line but finally started an upward movement this week.

Technical indicators are also turning bullish. The Relative Strength Index (RSI) attempts to move above 50. Similarly, the Moving Average Convergence/Divergence (MACD) is close to making a bullish cross and increasing above 50.

When combined with the bounce, the movement of these indicators above the key levels can confirm that a bullish trend reversal has begun.

BCH Price Breakout Ahead?

The daily time frame BCH crypto price analysis also suggests a bullish trend. This is because of the positive price action and indicator readings. The price action shows that BCH has traded inside a descending parallel channel since April.

During this time, the price has made five unsuccessful breakout attempts, the most recent on Oct. 15 (black icon). The attempt came after the price increased 15% the previous days, reaching the highest close in over three months.

This also took the BCH price above the minor resistance at $360, which is now likely to provide support.

The daily RSI and MACD generated a bullish divergence before the upward movement. The trend line of the divergence is still intact. So, if the BCH price breaks out from the channel as expected, it can increase to the confluence of resistances between $495-$505.

$500 In Sight

The weekly and daily time frames give a bullish Bitcoin Cash price prediction.

If BCH breaks out from its descending parallel channel, it can increase by 40% and reach $500, a level not seen since May.

Read More: Bitcoin Cash Price Prediction for 2024: BCH Price Analysis