Highlights

  • BCH has broken out of its trading range.
  • A golden cross happened.
  • Price is trading inside a symmetrical triangle.
  • There are resistances at .00.045 and ₿0.052.

Crypto analyst Bagsy tweeted an image of the BCH price chart and said that the price would move back to the high of ₿0.0053. He also noted that this movement can occur when BCH price does not lose the support at ở0.039.

Will BCH continue to move up? Let's look through the charts below.

Recent breakout

On January 14, 2020, the BCH price broke out above the trading range it has been consolidating since July 2019. The range is limited to between ,00,026 and ₿0.0325.

After the break, the price reached the next resistance zone at ,00.045, but the bulls were unable to push prices above this range but created a long upper bounce and then fell.

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BCH / BTC chart for 3 days | Source: TradingView

After the breakout, a bullish cross between the 50-day MA and the 200-day MA has occurred. This is an indication that the price may have started a new bullish market cycle. Currently, prices are trading above these MA lines and have not yet confirmed them as support. Therefore, it would not be surprising if prices returned to test support, which is a normal movement after a break.

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In addition, the BCH price has made a number of long wicks since the break, a sign of selling pressure confirming the possibility that prices will correct down to confirm the MA lines.

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Daily BCH / BTC chart | Source: TradingView

Triangle symmetrical

Since the January 18 high, the BCH price seems to be trading inside a symmetrical triangle. Currently, it is trading around the resistance line of this pattern. Similar to the daily chart, the price has created long upper wicks every time it intends to breakout through it.

If the price turns down from the current level, strong support is found at ₿0.039, where the pattern's support line and MA lines are staying.

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BCH / BTC chart of 6 hours | Source: TradingView

Future movement

As for the future movement, it is likely that BCH will eventually breakout up on this symmetrical triangle pattern.

The daily RSI has been above 50 since December 25, a sign that it is in an uptrend. Moreover, the symmetrical triangle is a continuation pattern. Since it is following an upward move, a breakout up is more likely.

If so, the price could reach resistance at ₿0.052, confirming the target stated in the tweet.

Bitcoin-Cash-tang-32%

Daily BCH / BTC chart | Source: TradingView

Conclude

BCH price is trading inside a symmetrical triangle, and the price could breakout on this pattern. Before doing so, we expect that a correction back to the support line of the triangle is possible.

BCH prices today | Source: Coinmarketcap

Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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