BCH Price Prediction: Bearish Pennant Points to Another Selloff

Summary:

BCH price prediction based on the picture on the daily chart could be indicative of a further move to the south, if the bears break down the pennant.

Is another selloff in the BCH/USD pair in the offing? If the BCH price prediction is based on the emerging pattern on the daily chart, then this could be the case.

The recent price action of several Bitcoin-correlated assets has evolved into a bearish pennant, as the highs and lows of the candles that have followed the crash of May 12 are gradually narrowing into a point of convergence.

With very little happening on the fundamental side to support a robust recovery, we could be in for a renewed selloff that may take the price of BCH/USD towards lows last seen in November 2020. However, the 200-day moving average is a critical support close to the $600 price level. This support has to be taken out before bears can force the breakdown move. There is also the potential for recovery above the $750, at which point the bearish expectation may start to thin out.

Here is the BCH price prediction based on the daily chart picture.

BCH Price Prediction: Levels to Watch

There is a bearish pennant on the daily chart, which follows the pattern seen on the Bitcoin-correlated assets. If the BCH price prediction follows the expected outcome of this pattern, we would see a breakdown that targets the 469.77 and 373.77 price support levels, as the price moves along the path of the measured move towards 238.67.

On the other hand, a break above the consolidation area allows the 867.97 and 1000 price resistance levels to come into play. This move would also invalidate the bearish pennant, allowing for a potential recovery towards 1202.18 if the price advances beyond 1000.