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The Bitcoin Cash (BCH) price has fallen slightly since reaching its yearly high of $329 on June 30.
On November 21, the price broke down from a short-term pattern. Is this a sign of things to come?
Bitcoin Cash Rally Runs Out of Steam After Reaching Yearly High
The BCH price has increased since breaking out from a long-term descending resistance trend line at the start of the year. At the time of the breakout, the trend line had been in place for more than 600 days.
The upward movement led to a new BCH yearly high of $329 in June before the rally ran out of steam. The BCH price has fallen since and is trading in the middle of a long-term range. So far, BCH created a lower high on October 23 (red icon).
The Relative Strength Index (RSI) is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset.
Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The RSI reading is mixed since the indicator value is falling but is still above 50.
BCH Prediction: When Will the BCH Correction End?
While the weekly timeframe reading is mixed, the daily one suggests the BCH price trend is bearish. This is due to the price action and the RSI readings.
The price action shows that the BCH price broke down from an ascending parallel channel, considered a bearish pattern. The breakdown suggests that the previous upward movement came to an end.
Additionally, the daily RSI legitimizes the decrease. The indicator is below 50 and falling, both signs of a bearish trend.
Cryptocurrency trader TyDigital believes the price will increase significantly after initially falling to support. He stated the:
“Price has made a macro doubled bottom and appears to be forming a bull flag on the midterm time frame. If $BCH ever makes it back towards $150, that will be a strong buy zone.”
If the BCH price downward movement continues, the altcoin can fall by another 18% and reach the $180 horizontal support area. The support also coincides with the 0.618 Fib retracement support level.
Despite this bearish BCH price prediction, reclaiming the channel’s support trend line can lead to a 36% increase to the next resistance at $300.
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