Bitcoin Cash is trading below $300: when will the BCH price correction end?
Date: 2023-07-13 Author: Karina Ziganova Categories: BLOCKCHAIN
On June 30, the price of Bitcoin Cash reached a new annual high, continuing the rally that started at the beginning of the month.
BCH soared by 200% without any significant pullback. However, the wave chart hints at the possibility of a short-term fall, after which the price of the asset will resume growth.
The price of Bitcoin Cash has formed a double bottom
Technical analysis of the weekly timeframe shows that BCH has been below a long-term downward resistance line since May 2021. At the same time, the price of the asset fell to a low of $86, which is only slightly higher than the historical low of $81 reached in December 2018.
However, since then, in early January 2023, Bitcoin Cash has bounced off a descending resistance line that had lasted 609 days at the time.
Although the price of BCH fell to pre-breakout levels in June, it rebounded sharply, forming a "double bottom" pattern that often leads to significant upward movements. Since then, the asset has soared by 200%.
Bitcoin Cash is currently trading slightly below the $285 area, the reaction to which is crucial for the future trend.
The weekly RSI supports continued growth. The indicator is above 50 and rising, which indicates a bullish mood of traders.
Has the BCH correction been completed?
The daily timeframe gives a positive outlook, mainly related to the wave calculation. In the long term, the chart indicates a strong bullish trend, but at the same time predicts a short-term decline.
Given the significant growth, wave analysis suggests that BCH has reached the top of the third wave of the five-wave upward movement. The third wave tends to be the most intense. In addition, the RSI has formed a bearish divergence, which is also considered a sign of the beginning of a correction.
However, a break and consolidation above the yearly high of $329 will mean that the trend remains bullish. In this case, the price of Bitcoin Cash may rise to the next resistance level at around $360.
