The BCH follows a downward resistance line.
It evolves between the $216 support and the $263 resistance.
The BCH/BTC pair has passed a downward resistance line but faces resistance at 0.0233₿.
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The price of Bitcoin Cash (BCH) fell following the rejection of a major resistance zone on October 16. It is expected that it will soon resume its upward movement toward weekly resistance.
The price of BCH has been declining since August 2, after reaching a local high of $338.49. Throughout the decline, the price followed a downward resistance line, which was validated for the 3rd time on October 16.
Rejection of the BCH by a resistance
The rejection of this line also coincides with the $263 zone, which initially served as support but has now converted into resistance.
A move above this resistance line will likely push the BCH up to $293, while a continued decline could push it down to the lower end of the range, to $216. The BCH declined slightly below this level (red circle below) before the current upward movement began.
The technical indicators in the daily time scale are still bullish, although the MACD has started to fall. The underlying trend has been rising since the deviation. The BCH is therefore expected to exceed resistance, before a possible short-term decline to support levels.
Trader crypto @Mesawine1 highlighted a BCH chart showing resistance at $265. Since the tweet, the price has been rejected by the zone has declined towards the middle of the range.
The 6 hour chart shows that the course is approaching a crucial resistance zone. It is expected that this resistance zone will be opposed to the rally in the event that the BCH seeks to move higher.
The support zone is at $234, which corresponds to the fibonacci level 0.5 of the full upward movement retracement. It also coincides with an upward support line in place since the beginning of the movement.
BCH 6-hour Chart
The 2 hour chart already shows an exit from what looks like a downward bevel, after the price has deviated below the lower end of the range. This is a bullish development.
In addition, the MACD is on the rise and has practically moved into positive territory.
Thus, the smaller time scales may have already started an upward movement, which will gradually become visible in higher time scales.
BCH Wedge Breakout
Since the aforementioned peak on August 2, the BCH price has likely completed an A-B-C correction (in orange below) with a low on September 23.
The BCH appears to have started an impulsive movement (in green) and is currently in wave 4, it is unclear whether this is the start of an upward movement or a broader A wave. That said, wave 5 is expected to end at either $285 or $316. These are the two areas with the most confluence of fibonacci levels.
A decline below the top of sub-wave 1, at $233, would invalidate this wave count.
BCH Wave Count
The BCH/BTC graph has similarities with its counterpart in BCH/USD. That said, the price has already passed a downward resistance line and follows an upward support line.
Recently, the price has been rejected by the 0.0233₿ resistance. If the price exceeds it, the next resistance line will probably be 0.027₿.
Technical indicators are bullish. The MACD has started to decline, but it has not generated any signs of a bearish reversal. It is therefore expected that the price will try to break above 0.0233₿ again.