- Bitcoin Cash break above the falling wedge pattern impact lost steam at the 61.8% Fibo.
- BCH/USD will require optimum technical levels, the right volume and a catalyst to trade above $400 again in 2019.
The previous month-over month rally for Bitcoin Cash stepped above $500 in June. The trend that took over after formed a lower high pattern in addition to a falling wedge pattern. The recent low hit levels marginally below $200 but culminated in gains breaking above the wedge pattern.
Bitcoin Cash recovery in October jumped above $300 but could not sustain gains to higher levels. Also limiting movement is the 61.8% Fib retracement level taken between the last swing high of $460.45 to a swing low of $197.93.
The immediate downside is protected by a short term trendline support. The Relative Strength Index (RSI) is holding ground above the average. As the RSI continues to grind closer to 70 (start oversold condition), BCH will eventually spike above the coveted $300.
The Moving Average Convergence Divergence (MACD) suggests that the price in largely in the hands of the bulls. Therefore, with the right amount of volume, a catalyst and a break above the 61.8% Fib level, the next rally has the potential to bring BCH above $400. However, from a technical perspective, trading above $500 before the year ends is an overstretch for Bitcoin Cash.
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.