Bitcoin Cash (BCH) Price Stabilizes Above $300 — Here’s How It Could Reach $500
Can Bitcoin Cash Reach $500? | Credit: Hameem Sarwar
Key Takeaways
- The Bitcoin Cash (BCH) price trades above a critical horizontal level.
- BCH has declined inside a corrective pattern for nearly six months.
- Will BCH bounce at the long-term horizontal area and break out?
The Bitcoin Cash price has struggled in 2024. While it started the year on a positive note, briefly moving above $700 in March, it has fallen significantly since. Measuring from the start of the year, BCH has increased by only 40%.
Despite this underperformance, the price recently reclaimed a key horizontal support level and is attempting to break out from a corrective pattern. Let’s analyze its price action and see if this breakout attempt will be successful.
BCH Price Above Key Level
The weekly time frame BCH analysis shows that the price has increased since May 2023, possibly trading inside a long-term ascending parallel channel.
While doing so, BCH culminated with a high of $719 in April 2024 but has fallen since. The decline ended on Aug. 5, when BCH validated the $305 horizontal support area and the channel’s support trend line (white arrow).
This is an extremely positive sign since the area has acted as both support and resistance since May 2020.
Periods when BCH has traded above this area have marked a bullish trend, while those below have been bearish. This effect becomes stronger when incorporating the ascending parallel channel.
Read More: Bitcoin Cash Price Prediction for 2024: BCH Price Analysis
Despite the bullish price action, the weekly RSI and MACD are not bullish yet. Rather, the RSI trades just below 50 while the MACD is still negative.
As a result of these mixed readings, whether BCH breaks down below the $300 area or bounces and increases will determine the future trend’s direction.
Possible Breakout
The daily time frame chart supports the bullish projection, implying that a long-term breakout is more likely. This is because the Bitcoin Cash price decrease since April has been contained inside a descending channel, implying it is corrective.
Furthermore,a bullish divergence has developed since July, a sign that a breakout is forthcoming.
Currently, the BCH price trades inside the $350 horizontal resistance area and the resistance trend line of the channel. A breakout will confirm that the trend reversal has started.
If it happens, the main resistance will be at $520, coinciding with the midline of the long-term parallel channel.
BCH Price Targets $500
The Bitcoin cash price shows mixed signs in the weekly time frame, though the daily one is entirely bullish. If the price breaks out from its parallel channel, it can increase rapidly toward the next resistance at $520.
You Might Like: Hamster Kombat Price Prediction 2024: HMSTR Price Analysis
Bitcoin Cash Price Falls 40% – BCH Wave Count Shows Completed Correction
Bitcoin Cash Price Prediction 2024: BCH Price Analysis
