Bitcoin Cash's Prospects for Recovery
Date: 2023-12-04 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Price Rally and Subsequent Correction
Bitcoin Cash (BCH) witnessed a surge, hitting a yearly high at $329 on June 30th. However, following this peak, the price began to decline.
On November 21st, the asset moved beyond a short-term pattern, signaling a concerning trend for BCH holders. The rally that initially drove up the BCH price fizzled out, leading to a substantial correction. Currently, BCH is trading within the mid-range of its long-term spectrum after a notable correction. On October 23rd, the asset formed a lower high, marked in red on the charts.
Anticipating the Correction's End
While the weekly timeframe readings remain inconclusive, the daily timeframe indicates a bearish trend. This observation stems from both the price action and RSI indicators.
The chart illustrates BCH price moving out of an ascending parallel channel, typically regarded as a bearish pattern. This breakout suggests the conclusion of the preceding upward movement. The daily RSI sits below the 50 mark and continues its descent.
If the decline persists, BCH might drop further by 18%, reaching a horizontal support area at $180, coinciding with the 0.618 Fibonacci retracement level.
Despite this bearish outlook, a potential return to the channel's support line could drive a 36% surge towards the next resistance at $300.
