BCH Technical Analysis 2023
Key Insights
- BCH consolidated between $100-$137 for 371 days in 2022 at times of significant accumulation. It was followed by a 200% price surge to $329 after its listing on the EDX Markets exchange.
- The listing gave positive period to BCH, despite prior concerns about development and miner activity.
- The current upward move may be exhausting. A second growth wave could take BCH to $325 and then $392.4 before another correction and a third growth wave.
As of writing, BCH holds the 15th position on CoinMarketCap with a market cap of $4,847,208,955. Here’s the daily price chart of BCH.
BCH Daily Timeframe
In the spring of 2022, there was a significant decrease in the coin's value, followed by a prolonged consolidation phase lasting 371 days. During this time, market participants actively accumulated large positions in the range of $100 to $137, as reflected in the volume profile.
However, the US EDX Markets crypto exchange, which specializes in institutional investors, was launched at the end of July. Major financial companies such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab supported this exchange, and Bitcoin Cash (BCH) became one of the four cryptos available for trading on it. This event acted as a catalyst for a sharp surge in the BCH price, which grew by 200% in just 9 days, reaching $329.
Historically, BCH has had its weaknesses, including the loss of development team members and concerns about attractiveness to miners. Its ecosystem lagged behind some newer and more scalable projects, including Bitcoin. This led to a situation where even a single positive factor could raise the price due to the liquidation of bearish bets.
The introduction of BCH on the EDX Markets exchange can be considered justified, as its status doesn't pose regulatory risks, specifically being recognized as a security, thus ensuring a safe BCH trading environment.
BCH Price Prediction
Now, let's consider possible developments and potential price movements for BCH.
At the current moment, the upward movement has likely exhausted its potential and is likely heading for a correction towards the upper boundaries of the accumulation phase. As a result of this correction, the price may decline to the levels of $171.5 and $153, and possibly even lower in the event of unexpected negative influences.
After reaching these price levels, though, we can expect a reversal and the beginning of the second wave of price growth for BCH. This will be the result of the prolonged accumulation phase. The first target for the second wave of growth could be the $325 level, followed by $392.4.
Upon reaching this final price level, another correction may occur, after which the third wave of growth could begin.
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