John Isige
The recovery in the cryptocurrency market and, especially in Bitcoin (BTC) price has dimmed many investors’ hopes for a pre-halving retrace. After the largest crypto bounced back from $60,500 support, its fork, Bitcoin Cash (BCH) price also gained immense momentum, climbing by 14% to $424 during the US business hours on Thursday.
Other altcoins generally moved up including Ethereum (ETH) which currently hovers at $3,542. Solana (SOL) gained by 9.5% topping $190 while Binance Coin (BNB) steadies its uptrend toward $600, rising by 6% in 24 hours.
Bitcoin Cash boasts a staggering 60% surge in the trading volume to $814 million as the market cap ticked by 12% to $8.3 billion. BCH ranks #17 among other cryptos.
Bitcoin (BCH) Price Nurtures Falling Wedge Breakout
The rally in Q4 prepared Bitcoin Cash for a bigger rally in Q1 which blasted the coin to new yearly highs at $530. However, the bullish theory took a temporary dive at the beginning of March as investors pocketed early profits.
BCH found relief from this temporary dive at $350 although a candle wick extended to $340 as shown on the four-hour chart.
Due to positive sentiment in the market and bolstered by Bitcoin’s surge to a new all-time high above $73,000, Bitcoin Cash aggressively bounced back, but this time it only made up to $450 before last week’s headwinds interfered culminating in another spiral drop to the $350 mark.
Backed by the recent behavior in the market where crypto prices have been rebounding much stronger following dips, investors have been quick to buy the dips, creating the momentum for another upswing.
The formation of a falling wedge pattern in the last few weeks implies that Bitcoin Cash has a bullish future and might keep moving higher to top highs at $530.
A buy signal in the Moving Average Convergence Divergence (MACD) suggests that buyers have the upper hand and that opportunities to buy the dip are still viable, especially with BCH likely to flip the $1000 psychological resistance level in a few months.
Should a golden cross pattern be confirmed by the 20-day Exponential Moving Average flipping above the 50-day EMA (blue and red lines on the chart), the bullish theory would be accentuated to support further growth.
That said investors searching for key entry positions can consider buying BCH after the ongoing correction at $421 finds credible support. The previous day’s open value of $410 and the wedge pattern’s upper trendline would pass as key entry positions to consider when buying Bitcoin Cash.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
