Bitcoin Cash (BCH) Price Analysis: 50% Upside Potential Amid Correction
Bitcoin Cash (BCH) has surged by 170% since June 10 and reached a yearly high on June 30 but then started a correction since then.
The wave count, technical indicators, and price action indicate the potential for continued growth, especially considering the wave count.
However, caution is advised as a drop below $230 could extend the correction, possibly leading to a lower low before a bounce.
BCH Price Rally After Breaking Long-Term Resistance
The weekly chart showed BCH following a downward resistance line since May 2021. In January 2023, it broke free and witnessed significant growth.
A double bottom pattern in June supported a strong rebound, leading to a surge of approximately 215%.
Bullish Indicators and Divergence Support Ongoing Increase
The weekly Relative Strength Index (RSI) readings are positive, signaling a potential bullish trend with steady upward movement. A bullish divergence also supports the upward momentum.
Daily analysis indicates a robust bullish trend based on the wave count.
The current movement suggests a five-wave upward pattern, with the third wave experiencing an extension.
If the wave count holds, BCH's price may reach the $380-$390 range, an increase of about 50% from the current level.
Looking Ahead: BCH should be monitored closely, as falling below $233 could lead to further correction and possibly a drop to $200 before any potential bounce and a chance to set a new yearly high.
