BCH Is On the Brink of a Massive Expansion - Here's Why | Credit: Hameem Sarwar
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Key Takeaways
Bitcoin Cash (BCH) broke out from a long-term triangle.
BCH has increased inside a parallel channel since April.
Can BCH finally begin its delayed rally to $1,500?
Bitcoin Cash has been grinding higher since forming a bullish engulfing candlestick (green icon) back in April.
With Bitcoin now hovering near its all-time high, BCH still has plenty of ground to cover, but a breakout in BTC could give it a strong boost.
Let’s dive into the charts to see what might be next.
Bitcoin Cash Price Analysis
The weekly charts show Bitcoin Cash broke out of a massive 7-year symmetrical triangle in July.
The price action generated plenty of excitement, with many expecting it to spark a major rally, but those big gains never came.
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Momentum indicators back the price action. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) broke out from their bearish trend lines.
The RSI is above 70, where most parabolic upward movements often transpire.
So, the long-term prediction of Bitcoin Cash is bullish, suggesting that the price will reach $1,500 soon.
When Will BCH Break Out?
The only issue with the BCH price is the short-term movement.
While the rally since April has suffered virtually no pullbacks and even caused a breakout from the long-term triangle, it has corrective traits.
This is because it is contained inside an ascending parallel channel and has massive overlap.
Nevertheless, the movement has moved too high relative to the previous decline to be considered a valid correction.
Additionally, the RSI consistently generates a hidden bullish divergence (orange), often leading to trend continuation.
Today, the Bitcoin Cash price attempts to move above the channel’s midline and break out above the $590 resistance area.
If successful, it could quickly pump toward the channel’s resistance at $650.
As seen previously, there is not much resistance above that, so BCH could finally break out from the channel.
Successfully moving outside the short-term channel’s confines will be the final confirmation that the BCH price is in a bullish trend, targeting at least $1,500.
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.
