Bitcoin Cash starts the week on a bullish note, rising by a modest 0.8% to trade at $388 on Monday. Based on the BCH price prediction looking at the technical structure and fundamentals, a major rally is on the horizon, likely to push the 16th-largest cryptocurrency to $515.
BCH Price Prediction Ahead Of Key Technical Pattern Breakout
Bitcoin Cash shows signs of a technical breakout as observed on the four-hour chart. However, traders must combine various factors to gauge the weekly performance.
Some of the key variables to keep in mind include sentiment in the crypto market, institutional demand, inflation,geopolitical forces, and sell-side pressure likely from Mt. Gox creditors.
Higher timeframes point to an optimistic outlook that could see BCH price prediction eye highs above $1,000. As for day-to-day price action, the Bitcoin fork shows impressive potential to ascend above the $400 and $500 resistance levels.
On the other hand, Bitcoin price sits on top of short-term support at $67,000, CoinMarketCap data shows. This follows a commendable rebound from $64,000 support last week.
If BTC price manages to take out $70,000 resistance, chances of starting a new price discovery will increase drastically.Bitcoin Cash price is expected to mimic the performance of BTC, ascending toward $1,000.
The four-hour chart directs traders to a possible inverse head and shoulders (H&S) pattern breakout.
An inverse H&S appears in a downtrend. It has three lows: a middle “head” lower than two shallow outside “shoulders.” A neckline (resistance) connects the shoulders. Traders must wait for a price break above the neckline, signaling a potential trend reversal, of as much as 28% for Bitcoin Cash.
After careful consideration of the risk involved, traders might then buy above the neckline, and place the stop loss slightly below it anticipating a rise. This pattern is the opposite of the regular H&S, used in downtrend identification.
What’s Next For Bitcoin Cash As Indicators Turn Bullish?
The impending inverse H&S breakout to $515 will depend on various indicators based on BCH price prediction. A golden cross formed on the four-hour chart must hold to keep traders interested in holding their longs.
The entire American session will be key to Bitcoin Cash price action starting with a potential reclamation of the 20-day Exponential Moving Average (EMA) in blue at $390. A confluence support at $383 formed by the 50-day EMA in red and the 200-day EMA in purple must hold as support. Conversely, sliding below this level could increase pressure on the sell side.
The presence of a sell signal by the Moving Average Convergence Divergence (MACD) indicator could be encouraging some traders to short BCH, hence the ongoing sluggishness below $390.
As the red histograms increase in size, the chances of Bitcoin Cash falling to $370 shoot up significantly.
With the BCH price prediction lagging the H&S breakout, bulls are not out of the woods and Bitcoin Cash may drop to rested $350 support before regaining strength for a larger move.
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