On Thursday, Bitcoin Cash attempted to break bullishly, however, like Bitcoin, bumped into a group of sellers, resulting in a lengthy upper wick here on a 21-hour candle. Ethereum, on the other hand, gained approximately 5%.
The $636.45 support and resistance level has kept Bitcoin Cash from entirely wiping out the gains earned during the Sept. 7 cryptocurrency flash crash, which coincided with El Salvador’s legalization of Bitcoin. If the cryptocurrency can break out of its bull flag shape on the daily chart, that might change.
Latest Bitcoin Cash Chart
On September 28 and 29, Bitcoin formed a bullish double bottom pattern at $472.55. This cryptocurrency reacted to the trend by increasing by around 34% over the next nine trading days.
Bitcoin Cash has established a bull flag pattern, containing a pole formed between September 29 and October 7, as well as a flag formed between October 8 and Thursday, as a result of the rise, which included an eight-day consolidation phase. If Bitcoin Cash can break out bullishly from the flag on high volume, it means the signal has been spotted.
The calculated motion, which involves estimating the length of the pole and multiplying it by the lowest potential price in the flag, indicates that the coin might rise to $760 in the future.
Bitcoin Cash is currently trading well above its eight-day and 21-day exponentially weighted moving averages (EMAs), with the eight-day EMA advancing higher than the 21-day, both of which are encouraging indicators. However, the cryptocurrency is currently trading below the 200-day moving average, indicating that market sentiment is unfavorable.
BTC Price Prediction
Bulls would like to see massive bullish volume enter the market and break Bitcoin Cash out of the flag pattern. This, together with momentum, should propel the cryptocurrency back up to over $618. If Bitcoin Cash can retake the $636.45 level as support, it will be able to make another run up to that level.
Bears would like to see large negative volume push Bitcoin Cash below a daily chart of $590, which might lead the cryptocurrency to lose support from the EMAs. Below the levels, there is assistance around 567 and indeed the flag pattern’s bottom declining trendline.
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