Bitcoin Cash Price Analysis: Harmonic patterns emerge in BCH/USD
- Bitcoin Cash trades over 21% higher on Thursday as crypto sentiment bounced.
- There is a harmonic pattern that has emerged on the 1-hour chart.
BCH/USD 1-hour chart
The price of Bitcoin Cash has shot up after most majors bounced on Thursday. This is in stark contrast to the fall over the last month or so. From its peak in February, the price has fallen 72% at its lowest recent point. Now the market has started to consolidate and has pushed up. The main consolidation high has been broken and now there is a decent potential resistance zone.
Looking closer at the chart, The Fibonacci extension and retracement now have a confluence area close to the 270.0 level. The retracement was respected at the 23.6% level and now the 161.8% extension and 38.2% retracement are halting any short term move higher. The main rationale for the potential bullish move from here is the 61.8% Fib retracement level matching the 261.8% extension zone. They are both strong Fib numbers and if there is a break higher it could be an area where the bulls might target.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
