TL;DR Breakdown
- Bitcoin Cash price expects a rise to $640 following cup and handle formation.
- Strongest resistance lies at the $520 mark.
- Strong support lies at the $440 mark.
The Bitcoin Cash price prediction by the Trading View analyst Blurry Face Nobody shows the formation of a cup and handle pattern. This is a bullish indicator, and if it comes into play, the price should rise towards the $640 mark after breaking towards the upside. On the 12th of January, the cryptocurrency came to a rest near the $470 mark in the evening.
1-Day Bitcoin Cash price analysis
Bitcoin Cash was priced at $472.12 at the time of writing. The cryptocurrency rose across the $510 mark on the 12th of January after it had bottomed near the $400 level on the previous day, following the price correction observed by the king of cryptocurrencies Bitcoin BTC. The cryptocurrency has seen some price retracement following the afternoon, and the coin currently rests near the $470 range.
The technicals show that the cryptocurrency is under a buy signal, with fourteen of the technicals indicating a buyers’ trade, 9 stand neutral, and 5 are at a sellers’ position. None of the oscillators favor the selling position, 8 are neutral, and 3 are for a buying position. Eleven moving averages indicate a buy signal, 1 stands neutral, and 5 stand for a selling position, thus indicating a strong buying market for the pair.
The Bollinger bands’ midline recently rejected the BCH price trajectory, yet it might see a retest to the midline. If the cryptocurrency gathers enough bulls to break across the midline, the next target price will lie above the $500 mark. The expansion on the Bollinger bands is quite high currently due to the increased price volatility.
Bitcoin Cash price prediction: What’s there to expect?
Analyst Blurry Face Nobody believes that the BCHUSD trading pair will form a cup and handle pattern. The cup and handle formation is a bullish indication, and the price is likely to see an upward pull after completing the down-channel for the handle.
If this cup and handle formation comes into play, the cryptocurrency’s price will slingshot towards the $640 to $660 zone, per this Bitcoin Cash price prediction. The cryptocurrency has resumed trading inside a 3-week ascending channel after retracing to $400, in the analyst’s opinion. BCH seems to be attempting another upside breakout from this ascending channel, while the cup and handle formation is for the short-term.
Analyst El Mahdi Majdoub highlighted the formation of a head and shoulders pattern in the same time-frame. The Bitcoin Cash price prediction shows that the cryptocurrency will turn bearish and fall towards the $440 mark. Per the analyst, the price turned bullish after breaking out of a falling triangle pattern, just before it headed towards forming the H&S pattern. To complete this pattern, the trajectory should fall to form the right shoulder.
Currently, the crypto trades above the $466 support, which is crucial if the cryptocurrency is going to resume the bullish continuation. If the price drops below this zone, the cryptocurrency will continue falling towards the $440 to $420 range. The stop-loss for Mahdi’s trade setup is marked close to $490, while the H&S pattern is a bearish indicator.
