Bitcoin Cash (BCH), the once-controversial Bitcoin (BTC) offshoot is seeing a major breakout today and an excellent market support structure, as the popular altcoin executes its first reward halving ever.
We begin on the daily BCH/Bitcoin, and see that a clear breakout has been completed on the indicators. The RSI trend has been very cleanly snapped, and we can expect that trendline to now serve as support. Likewise for the histogram, which also saw a perfectly clean breakout.
The price here has engaged the 2020 inflection line. We may see this line break now, and a consolidation above it (the green box scenario), or be held here and consolidation below (orange box). But both cases would be ultimately bullish for BCH, as even the orange box scenario would constitute a higher low.
On the weekly chart, we see that the current price action has blasted BCH above the the 8 and 21 EMAs. Closing out the week above these levels – which pretty much form a single level – would be a bullish sign for medium-term price action.
The histogram here looks interesting, at present dipping back above the centerline after just a single week underneath it after several months. Again, if this profile holds until Sunday, it will be quite a bullish indicator.
Finally, moving to the 3-day BCH/Dollar chart, we see that Bitcoin Cash is approaching the center of its regional market structure at about $300.
This movement may really tell us something about where BCH might go. This is because, the uptrend starting in 2020 has utterly collapsed, destroying the previous market structure, and looking like a potentially longer downtrend. But if BCH could get above $360, it would start to put serious pressure on the MTF downtrend that has taken hold.
Overall, BCH is having a really excellent week – fitting, after so much eye-popping downside in the past two months. Many indicators look excellent for a continued uptrend, but we have to see how the week paints to start considering this anything more than a news-driven week.
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