Bitcoin Cash: in an impressive rally, exceeds $ 300

From its annual low of $90 recorded on June 10, BCH price experienced an outright breakout. Eleven days later, she broke up a descending resistance line that had been in place since February, thus confirming that the correction had finished and that new highs were coming.

However, BCH’s rise since the breakout has been surprisingly fast and without reversals. This unprecedented increase led the price to reach the US$320 on June 30marking its highest level since April 2022.

BTCH: what analysts say

technical analysts,l study recurring price patterns and investor psychology, use the Elliott wave theory to determine the direction of the long-term trend. In this sense, the current wave count indicates a pbullish forecast for BCH.

According to the wave count, the price of BCH is currently in the third wave of a five-wave cycle, which is usually the sharpest in an upward movement. This third wave has reached a length that is 3.61 times greater than the first wave, an impressive but not unheard of level of extension for this stage of the cycle.

However, when looking at short-term technical analysis on a six-hour time frameit is observed that it is possible that the price has reached a local maximum. This is due to two main factors: andl Relative Strength Index (RSI) and wave count.

First of all, andThe six hour RSI is showing a bearish bias, indicating that the market may be overbought and a downward correction could be in store. A bearish divergence has also manifested, implying that the momentum rise is not matched by the price rise, often triggering a move down.

In second place, short-term wave counting reveals that price has completed a corrective ABC structure. However, since it has not yet reached the Fibonacci support level at $235, it is possible that the current decline is just the first wave of a broader ABC structure.

This would be more in line with the length of the third wave, since the current fourth wave seems to be too short compared to the third. If the BCH price manages to move above the yearly high of $329, it would indicate that the uptrend is still in effect and the rally could continue towards the next resistance level at $360.

What are the differences between Bitcoin and Bitcoin cash?

Bitcoin Cash is a clone of an earlier version of Bitcoin in which the development team modified some parameters, including the size of the blocks, and it arose as a response to the scalability problem of the original blockchain.

According to his supporters, Its objective is to follow the vision of the creator of the Bitcoin protocol (Satoshi Nakamoto) according to the technical document of said technology. The idea behind BCH was to get more transactions done on the Bitcoin Cash blockchain without resorting to off-chain solutions, like the Lightning Network implemented in Bitcoin.