Bitcoin Cash Price Forecast: BCH Awaits Massive Technical Upswing But On-chain metrics Spell Doom
- Bitcoin Cash price forms a falling wedge pattern likely to boosts it beyond $500.
- The MACD has a minor bullish signal, hinting at how bulls are gradually taking control.
- A robust resistance may hamper the recovery, as illustrated by the IOMAP.
Bitcoin Cash price has recently secured support at $430, averting losses that may have seen bears explore downhill levels under $400. The entire market is dealing with a sluggish price action coupled with an inclination to the south.
Support at $430 allowed bulls to swing into action, thereby adding credence to the potential recovery. In addition, Bitcoin Cash’s four-hour chart illustrates the formation of a falling wedge pattern. A bullish impulse from this pattern will affirm the uptrend.
Bitcoin Cash Price Draws Nigh To Colossal Upswing
A falling wedge is a technical pattern regarded as highly bullish. It forms a reversal pattern, especially after an asset goes through elongated downward price action. Two trend lines create the wedge, linking Bitcoin Cash’s declining peaks and lows.
During the initial stages of the pattern’s formation, BCH trading is characterized by high volume. However, as the pattern slopes downward to the right, the volume diminishes, suggesting a consolidation period.
Meanwhile, Bitcoin Cash is expected to break out above the pattern before the trend lines meet. The falling wedge is confirmed when the price makes a real break above the upper trend line. Note that a spike in volume helps validate the upswing and cements the bulls’ influence on the price.
BCH/USD four-hour chart
Bitcoin Cash’s impending uptrend has also been reinforced by the Moving Average Convergence Divergence (MACD) based on the four-hour chart. Realize that this is a technical tool that tracks the trend of an asset and calculates the moment.
As the 12-day exponential moving average (EMA) crossed above the 26-day EMA, the odds for a bullish price action soared. Therefore, if the technical picture remains the same or improves in the near term, we expect Bitcoin Cash to close the gap above $500.
Looking At The Other Side Of The Picture
In/Out of the Money Around Price (IOMAP) by IntoTheBlock shines a light on a seller congestion zone that could absorb the buying pressure described above, thus limiting recovery. This region runs from $442 to $455 and hosts around 169,000 addresses that previously purchased roughly 692,000 BCH.
Bitcoin Cash IOMAP model
Bitcoin Cash price downside is protected by relatively weak support areas, as shown by the metric. In other words, massive losses could come into action as the overhead pressure increases. The range between $385 and $393 is one of the subtle buyer concentration zones. It hosts nearly 54,000 addresses currently profiting from 257,000 BCH bought in the range.