BCH price remains within a horizontal channel even as the formation of a bullish pattern points to a probable breakout. The altcoin has begun the week with subtle price action as the global crypto market cap drops below the crucial $2.5 trillion mark; down by 8.91% in Monday’s session.
Since bouncing back above the crucial support zone of 600 over week ago, Bitcoin Cash has been trading within a rather tight range. The altcoin is within a horizontal channel of between 600 and the resistance zone of 650.
On a four-hour chart, BCH price is trading along the 25 and 50-day exponential moving averages that have converged at around 625. Even with the current neutral outlook, I hold a bullish bias. The formation of an inverted head-and-shoulder pattern, whose formation began in mid-September points to a probable breakout.
At the time of writing, the crypto was up by 0.97% at 623.08. In the near term, it will likely continue to find resistance along the resistance zone at 650 as the bulls gather enough momentum for a breakout. However, for bull run to occur, BCH price will need to surpass the upper level of 675.61.
However, this thesis will be invalidated by a move below the psychological level of 600. If that happens, the support zone will probably be at 567.57.
This post was last modified on Oct 25, 2021, 07:00 BST 07:00