BCH Technical Analysis: Golden Opportunity For BCH Holders

The BCH prices fail to give a bullish breakout of an inverted head and shoulder, but the recent reversal breaks the resistance trendline and the $130 mark. Moreover, the intraday trading volume spike supports the possibility of an uptrend to the next overhead resistance of $175. Hence the breakout entry is a golden opportunity for BCH holders and sideline buyers.

Key Points:

Source - TradingView

BCH Technical Analysis

The BCH prices failed to exit the resistance trendline with an inverted head and shoulder resulting in a bearish turnaround on 26th August. However, the recent 17% recovery results in the bullish breakout of the resistance trendline and the $130 mark.

Moreover, the price action displays a triple white soldiers pattern forming with the spike in the intraday trading volume. Hence the uptrend possibility of exceeding the $150 mark increases significantly.

Therefore, the sideline buyers can grab onto this opportunity of a breakout trade to ride the upcoming bullish trend. Additionally, the uptrend shows potential to reach the next resistance level of the $175 mark accounting for a price jump of more than 30%.

However, if the BCH prices take a bearish turnaround, traders can expect a retest of the broken trendline with a drop to $110.

Technical Indicators

The daily-RSI slope rises above the halfway line after bouncing from the 14-day SMA to start a diagonal uptrend in the nearly overbought zone.

The fast and slow lines show a bullish crossover in the daily chart resulting in a positive trend in the MACD histograms.

Hence the technical indicators display an improvement in the underlying sentiments reflecting increased demand for BCH.

Resistance Levels - $150 and $175

Support Levels - $110 and $100