Bitcoin cash might soon experience an explosive 22.5% move
With most cryptocurrencies creeping higher in the last few days, it looks like it is time for Bitcoin Cash, BCHUSD, to experience sharp burst of volatility.
Bitcoin Cash has been lagging behind Bitcoin (BTC) by significant proportions. The original coin was priced near $54500 at pixel time, and Bitcoin Cash was priced at $537. However, this is not stopping traders from trading Bitcoin Cash, as it is priced lower and offers a higher possible percentage return. Such as event might unfold over the next few days.
BCHUSD remains trapped in an ascending triangle pattern. The February 25 and March 3 highs of $558.45 form the horizontal part of the pattern, whilst we can connect the February low and March 5, 6 and 8 lows with an upward sloping trend line.
The difference between the horizontal level and the start of the upwards pointing trend line is approximately $125.54. The amount can be added to the lateral level of $558.45 to derive the pattern target of $684.93. The $125.54 move is equivalent to a 22.5% gain.
For the price to embark on this bullish path, the price would need to successfully break the level of $558.45, and afterwards not trade strongly back into the pattern. If the price indeed trades below $558.45 after a breakout, then the pattern would have failed.
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BCHUSD Four hour Chart
Author
Alejandro Zambrano is ATFX’s Global Chief Market Strategist. He combines extensive professional experience and a pragmatic attitude to trading, building clients’ understanding of the markets and the rationale behind investing.
