Why Has the Bitcoin Cash (BCH) Price Failed to Take Off?
Despite having overcome a significant long-term resistance zone, the Bitcoin Cash (BCH) price has been unable to continue rising.
The trend cannot be accurately predicted using readings from short-term time frames. Therefore, the next move's direction will be essential in figuring out what the trend is.
Bitcoin Cash Price Fails to Pump After Breakout
Since July 2021, the price of BCH has been below a descending resistance line. November 2022 saw a low of $87 as a result of the decline.
After that, the price increased after taking a bounce. After 609 days, it finally broke through the resistance line at the beginning of 2023. Such long-term structural breaks frequently result in pronounced upward movements.
BCH, however, was an exception to this rule. After the breakout, the price barely increased before reaching a high of $155 on February 20.
In addition, it has since declined and is currently trading near its breakout level.
BCH/USDT Weekly Chart
Additionally, the weekly Relative Strength Index (RSI) offers no clear indicators of the trend's direction.
The RSI is used by traders as a momentum indicator to determine whether a market is overbought or oversold and whether to buy or sell a particular asset.
Bulls still have the upper hand when the RSI reading is above 50 and the trend is up, but the situation is reversed if the reading is below 50.
Although the indicator is rising, it is currently trading just under 50. This is a precursor to an ambiguous trend.
The horizontal levels of support and resistance that are the closest are $100 and $150, respectively.
BCH Price Prediction: What Does the Future Hold?
The daily time frame's technical analysis is of no use in determining the trend's direction. Both bullish and bearish signals are present in the price action.
The BCH price dropped twice under the $115 horizontal support region while moving along a descending resistance line. It is unclear, though, whether the price has reclaimed the area or is simply validating it as resistance.
The daily RSI is also freely fluctuating above and below 50. When the trend's direction is unclear, this frequently happens.
BCH/USDT Daily Chart
Therefore, whether the price breaks out or declines from the $150 range will probably determine the long-term BCH price prediction.
While the latter might result in a decrease to $70, the former can result in an increase toward $200.