Has BCH Finished its Correction? | Credit: Hameem Sarwar
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Key Takeaways
Bitcoin Cash (BCH) broke down from an ascending parallel channel.
The BCH price attempts to validate long-term diagonal support.
Can BCH bounce, or will the channel breakdown lead to new lows?
After weeks of mixed price action, Bitcoin Cash (BCH) is at a turning point.
The coin broke above a key resistance level but quickly slipped below its channel structure, casting doubt on what would happen next.
The charts show bullish and bearish signals, making the next few weeks crucial for the trend.
Bitcoin Cash Price Struggles
The weekly time frame BCH price analysis gives mixed signs.
On the bullish side, Bitcoin Cash broke out from a descending resistance trend line, reaching a high of $632.64.
While BCH fell last week, it validated the resistance trend line as support (green icon), a customary movement after such a breakout.
However, there has also been a bearish development during this same price movement.
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Since April, the Bitcoin Cash price increase was contained inside an ascending parallel channel, and last week’s decline triggered a breakdown below it.
The triangle existed for five months, so its breakdown is a negative sign that could lead to an extended correction.
So, the retest of the previous resistance and the channel breakdown are conflicting signs that do not align.
Either one or the other has to win, meaning the other will be invalidated.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
