Bitcoin Cash (BCH) gears up for yet another attempt to spend $ 265
The BCH follows a descending resistance line.
It is moving between the support at $ 216 and resistance at $ 263.
The BCH / BTC pair broke a descending resistance line but is facing resistance at 0.0233₿.
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The price of Bitcoin Cash (BCH) fell following the rejection October 16 an important resistance area. It is expected to resume its upward movement towards weekly resistances soon.
The BCH price has been declining since August 2, after hitting a local high at $ 338.49. Throughout the decline, price followed a descending resistance line, validated for the 3rd time on October 16th.
Rejection of BCH by a resistance
The rejection of this line also coincides with the $ 263 area, which initially served as support but has now converted to resistance.
A move above that resistance line will likely take BCH up to $ 293, while a continued decline could bring it down to the lower end of the range, to $ 216. BCH declined slightly below this level (red circle below) before starting the current upward movement.
The technical indicators in the daily timescale are still bullish, although the MACD has started to fall. The underlying trend is upward from the deviation. BCH is therefore expected to break above resistance, before a possible short term decline to support levels.
Crypto trader @ Mesawine1 pointed to a BCH chart showing resistance at $ 265. Since the tweet, the price has been rejected by the zone has declined towards the middle of the range.
The 6 hour chart shows price is approaching a critical resistance zone. The latter is expected to oppose the rally, should the BCH look to move higher
The support area stands at $ 234, which is the 0.5 fibonacci level of the entire upward movement retracement. It also coincides with an upward support line in place from the start of the movement.
The 2-hour chart is already showing an exit from what looks like a downward wedge, after price deviates below the lower end of the range. This is a bullish development.
In addition, the MACD is on the rise and has practically passed into positive territory.
Thus, the smaller timescales might have already started an upward movement, which will gradually be visible in larger timescales.
Since the aforementioned high on August 2, the BCH price has likely completed a correction in ABC (in orange below) with a low on September 23.
BCH appears to have started an impulsive move (in green) and is currently in wave 4. It is not clear whether this is the start of an upward move or wave A to a greater degree. That said, Wave 5 is expected to end either at $ 285 or $ 316. These are the two areas with the most confluence of fibonacci levels.
A decline below the top of Sub-Wave 1, at $ 233, would invalidate this wave count.
The BCH / BTC chart has similarities with its counterpart in BCH / USD. That said, the price has already broken through a descending resistance line and is following an ascending support line.
Lately, the price has been rejected by the resistance at 0.0233₿. If price breaks it, the next resistance will likely be at 0.027₿.
Technical indicators are bullish. The MACD started to decline, but it did not generate any sign of a bearish reversal. We therefore expect the price to try again to break above 0.0233₿.