From around the beginning of November BCH/USD has been moving lower, but looking at the recent activity, we can see that the crypto started coiling up. For now, we remain neutral, but in order to consider a further directional move, we would like to see not only a break of one of the sides of the triangle, but also a break through one of our key support or resistance levels that are highlighted on the chart.
If the lower side of the triangle breaks and the price falls below the 180.90 support hurdle, marked by an intraday swing high of December 18th and by yesterday’s low, this might open the door to the 168.41 zone, which is currently the lowest point of December. Initially, the crypto may stall around there, or even correct back up a bit. That said, if BCH/USD is not able to push back above the 180.90 barrier, this could result in another round of selling, possibly bringing the price below the 168.41 area and targeting the 151.45 level, marked by the low of March 26th.
Our oscillators, the RSI and the MACD, seem to be in support of the idea for us to stay put and wait for a clear move by BCH/USD. Both indicators are running flat without any clear indication of a potential further direction.
Alternatively, if the price breaks the upper side of the triangle and jumps above the 196.83 hurdle, this may clear the path to the 211.18 obstacle, a break of which may open the door for a further move up. This is where more buyers could join in and lift the crypto to the 225.45 barrier, marked by the high of November 29th.
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