Is the Bitcoin Cash Trend Bullish or Bearish? | Credit: Hameem Sarwar
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Key Takeaways
Bitcoin Cash (BCH) created a bullish engulfing candlestick last week.
It is unclear if the BCH price has broken down from a parallel channel.
Will BCH dip further, or has the price already finished its correction?
After weeks of steady gains marked by both bullish and bearish signals, Bitcoin Cash (BCH) has hit a decisive moment.
The coin briefly broke out of a diagonal resistance line but quickly slipped back, failing to hold its momentum.
Since April, BCH has traded within a parallel channel, making its next move outside this range critical for determining the long-term trend.
Let’s take a closer look at the price action to see whether BCH is gearing up for a bullish breakout or facing further downside.
Bitcoin Cash Mixed Signals
BCH is sending mixed signals on the weekly chart, leaving traders uncertain about its next major move.
Last week, BCH broke above a diagonal resistance trend line and briefly validated it as support, forming a bullish engulfing candlestick in the process.
That move initially looked like the start of a strong upward trend.
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Technical indicators lean bearish to break the deadlock. The Relative Strength Index (RSI) created a bearish divergence (orange) and is falling.
The Moving Average Convergence/Divergence (MACD) is losing momentum and is close to making a bearish cross (black circle).
So, the weekly time frame gives a slightly bearish Bitcoin Cash price prediction, which will be confirmed if the price closes below the bullish engulfing candlesticks opening (green icon).
Is Bitcoin Cash Bearish?
A closer look at the breakdown suggests the BCH decline will continue, since the wave count shows an unfinished correction.
Bitcoin Cash finished a five-wave upward movement between April and August (green).
If that is true, today’s Bitcoin Cash price is in wave C of an A-B-C correction (red).
While wave B retraced a significant part of the decline, it failed to reclaim the channel, which would be needed to confirm that the bottom is in.
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.
