BCH Technical Analysis: Control of $770 Will Open the Way to $2340
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During the previous two trading weeks on the BCH market, sellers managed to lower the price by 15%. However, this is their maximum result, as buyers actively bought the price, leaving the pins down on the weekly candles. Trading volumes during the 2 correction weeks were low and sellers failed.
Given the strong weekly candle in early August and the weak price correction after the closing of this candle - the initiative in the market, BCH initiative in the market remains with buyers. Though, it is too early to talk about a powerful growth wave without control of the $730-$770 range. The fact is that a potentially large number of sellers who in late April were able to keep the price and bring down BCH by 48%. Therefore, breaking and fixing above the $730-$770 range, buyers will open an important door to start a confident growth wave.
Technical Analysis of BCH on the Daily Timeframe
Starting from 16 August, the BCH price began to correct in the local fall channel. Analyzing the nature of the fall and comparing it with the previous growth wave, the worst-case scenario in the BCH market is the price fall to $573. It is at this point it would be ideal to buy BCH for medium-term growth and low risk.
This negative scenario will be relevant if the trading volumes during the fall do not significantly increase and sellers do not meet this target with one daily candle. Although, buyers are now trying to put an end to the black correction channel and break it up. In this case, a new attack in the range of $730-$770 will begin at the end of the week, and from Monday, we will see how well sellers keep this range.
The BCHBTC Price Is at a Critical Point
The global situation in the BCHBTC market does not look so good. Since May 2021, buyers have not taken active action. In the weekly timeframe, we see that in early August, buyers perfectly closed the weekly candle. But, after that, sellers again approached the critical range of 0.0115-0.0125. For a sharp upward impulse, there must be no aggression from sellers during the next two trading weeks. This fact will mean their complete depletion before the new local bull run.