Bitcoin Cash witnessed a staggering 200% price surge in June, drawing significant attention from traders and investors alike. However, following this astronomical rise, a downtrend correction ensued, with Bitcoin Cash now finding support at the $180 mark, priming it for a bullish spike that’s contesting the resistance trend line.
Currently, Bitcoin Cash is oscillating between two pivotal Fibonacci levels: 61.80% and 38.20%. The breakout direction from these levels will be a decisive factor in predicting Bitcoin Cash’s future price trajectory.
Bitcoin Cash is sculpting a potential double bottom pattern, taking root from the $180 mark. This setup suggests a reversal is on the horizon, aiming to challenge the short-term correction resistance trend line. A successful breakout could propel Bitcoin Cash beyond the 38.20% Fibonacci level.
Currently, the BCH price trades at $195, with an intraday growth of 0.76%, displaying a potential rounding reversal before reaching the 200-day EMA. Moreover, the price action displays multiple Doji candle formations that increase the likelihood of a bullish breakout.
Shifting our focus to the technical indicators, the RSI presents a bullish divergence in alignment with the double bottom pattern, indicating an undercurrent of positive momentum. Furthermore, the MACD and its signal lines sustain a bullish stance with similar divergence and dodge a potential bearish crossover.
On inspecting the exponential moving averages in the daily chart, a conspicuous sideways trend becomes evident between the 50 and 200-day EMA. This lateral movement signals caution, as a looming death cross might materialize if the BCH price dips beneath the crucial $180 support threshold.
Will Bitcoin Cash (BCH) Price reach $300?
On the bullish front, Bitcoin Cash exhibits substantial potential for growth, with a target of $300 being feasible upon a breakout above the $228 mark, a level that coincides with the 38.20% Fibonacci retracement.
Conversely, if the price of BCH can’t hold on to $180, a major level that aligns with the 61.80% Fibonacci level, it could tumble down to $150 or even as low as $100.
The tug-of-war between these Fibonacci levels will indeed play a pivotal role in the BCH price trend in the near term.
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Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he’s trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he’s not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.