- 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.
BCH/USD one-hour chart
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