- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Latest Crypto News & Analysis
Editors’ Picks
Decentraland price under pressure by market turmoil, MANA points to steep correction
Decentraland (MANA) has not been able to sit back and enjoy its all-time highs printed on Thursday, above $6.0. MANA price reversed to the downside as a wave of negative news surrounding a new Covid variant hit news wires during the Asian session.
Bitcoin, Ethereum, XRP at discount ahead of Black Friday while investors fear new COVID strain
Over $265 billion wiped off the overall crypto market capitalization in a bloodbath as news of the new Covid strain breaks out. Bitcoin, Ethereum and Ripple prices have tumbled over 6%, and the top 10 cryptocurrencies are trading at a steep discount.
XRP holds key support while indicators point to short-term recovery
Ripple started a recovery wave above a key support level of $1.024. XRP price started an upside correction as indicators suggest a short-term recovery. The coin may initiate a fresh downtrend upon a breakout of the $1.024 support level.
Dogecoin-killer Shiba Inu hits 1 million holders, gets listed on South Korean exchange
Shiba Inu hit an important milestone of 1 million holders with a rise in the number of investors. The memecoin listed on a South Korean crypto exchange successfully despite strict regulatory requirements.
Black Friday 2021 Discounts!
Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans.