Bitcoin Cash (BCH) Likely To Climb Above Descending Channel


Bitcoin Cash Chart With Values

Bitcoin (BTC) Cash as been trading in a strong descending channel since the beginning of the correction. After touching the top of this channel in late April, BCH/USD was expected to touch the bottom of this descending channel in the months ahead. However, the price settled atop a strong support around September. This support lies around $412 and has not been breached yet. The price of BCH/USD has touched this support three times since the beginning of September. Technical indicators point to the beginning of a new rally from current levels. However, Bitcoin Cash (BCH) will face a strong resistance first around $462 and later around $526. The resistance around $526 is particularly strong and may give touch time to the bulls in the near future.

Long term, a trend reversal seems to be in the offing. The 10 Day EMA is preparing to climb above the 21 Day EMA which could prove instrumental in beginning a new cycle. However, as we can see on the chart, this has happened in the recent past but the price failed to conserve its gains. This time, Bitcoin Cash (BCH) bulls have the advantage of fighting from a strong support. Even if they cannot breach the resistances at $462 and $526 from current levels, they can at least defend the price against a fall below $412. If the price falls below $400, all bets of a trend reversal are off. In that case, the price will nosedive straight towards the bottom of the descending channel and settle below $300.

Bitcoin Cash Chart With Values

If the bulls manage to defend the price against a fall below $400, we can expect the price to continue to trade sideways till year end. In that case, it will become very easy for the bulls to break the downtrend resistance and begin a new cycle. It is also important to note that Bitcoin Cash (BCH) has tested support twice against Bitcoin (BTC). In fact, BCH/BTC completed its correction around mid September but the price could not rally as general market conditions were not favorable. So, the price had to retrace and has now tested the support once again. Bitcoin Cash (BCH) just like other coins has to begin a new cycle against Bitcoin (BTC). Members of the Bitcoin Cash (BCH) community claim that BCH is the original Bitcoin as it is spendable.

Popular cryptocurrency merchants and payment gateways already use Bitcoin Cash (BCH) due to its cheaper transaction cost and high speed compared to Bitcoin (BTC). As the price of Bitcoin Cash (BCH) starts to appreciate against Bitcoin (BTC), that narrative will only get stronger. Renowned Bitcoin Cash (BCH) advocate, Roger Ver is already considering plans to launch his own exchange. He already owns and if he were to launch an exchange on that, it would probably get a lot of people buying Bitcoin Cash (BCH). Unlike Charlie Lee, Roger Ver does not seem to have any plans of distancing himself from his project.

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