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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

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.

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FXStreet Team

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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