Bitcoin Cash Price Forecast: BCH is breaking out towards $680
|- Bitcoin Cash price seems to be breaking out of an ascending triangle.
- The Relative Strength Index (RSI) supports the bullish outlook.
- If buying pressure continues rising, BCH could quickly rally 22% towards $680.
Bitcoin Cash price is at the final stage of a two-week-long consolidation period. As BCH sliced through a critical resistance barrier, the odds have drastically increased for the uptrend's resumption.
Bitcoin Cash price aims for higher highs
Aggressive buyers are emerging as Bitcoin Cash price trades above the key $557.50 resistance level. This price point represents the x-axis on an ascending triangle that developed within BCH's 4-hour chart. Unlike the previous breakout attempts, Bitcoin Cash's price action is impulsive, adding confidence to the bullish outlook.
This technical formation forecasts that BCH could rise to a price target of $680. But if the buying pressure is strong enough, Bitcoin Cash could advance towards the next resistance level at $750.
It is important to note that failure rates for upward breakouts from ascending triangle patterns are around 11%. Thus, the odds that the developing rally will be successful are high compared to other technical patterns.
BCH/USD 4-hour chart
A reversal of the breakout over the course of the day would signal that a more complex pattern is developing or that Bitcoin Cash price needs to move closer to the triangle's apex before a successful breakout materializes.
Regardless, a failure to hold the rising trendline at $525 would trigger a decline to the next strong support level at $500. This price hurdle has acted as resistance and support during the formation of the aforementioned ascending triangle.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.