Hey dear friends, I hope you are well and welcome to the new Bitcoin Cash (BCH) update.
It has reached the resistance of the falling wedge:
On the daily chart, after the decline, the price action started moving along the falling wedge. As we know among the trader community, this pattern is considered a bullish reversal pattern. Most of the time the price action beats the resistance of this pattern.
Price action is currently trying to break through this resistance.
The move of a great shark:
On the 4-day chart, BCH price action is forming a bullish shark pattern. Priceline has already visited the oversold zone as it was taken down to $ 468 and rallied higher. However, if the 50 simple moving average will be broken, it may give us another chance to catch it from the buy zone of this pattern. There are also 100 simple moving average supports in the potential reversal zone.
Expanding formation:
BCH is forming an expanding formation on the weekly chart. We can notice that the price action at this moment is supporting the expanding formation. Whenever it bounces off the support, it forms the higher highs. Therefore, once the price action is bounced again, we can expect another higher high.
Conclusion:
Although the price action of Bitcoin Cash has formed a large bullish shark pattern, but once the price action starts a bullish divergence, then it may cross the selling targets of this pattern and form higher than the previous high.