Bitcoin Cash $BCH$: Technical Overview

When assessing the market sentiment for BCH, technical indicators and moving averages provide valuable insights. The majority of technical indicators suggest a bullish market sentiment, with indicators like the Relative Strength Index (RSI) and Stochastic Oscillator indicating a buy position. However, the Stochastic RSI presents a sell position, implying a potential price correction in the near future. Moving averages, both simple and exponential, show a mix of buy and sell signals across different timeframes, suggesting potential short-term fluctuations but an overall upward trend in the medium to long term.

Based on the analysis of price action, we can observe a nearly established accumulation structure on the 3-Day timeframe for BCH. Currently, BCH is in the Jump-Across-Creek (JAC) phase, with a price range of $244-$223. According to Wyckoff logic, the next expected move is the Back-Up-Against-Creek (BUEC) phase, which represents a retracement due to profit-taking and offers an opportunity for re-entry.

The BUEC zone can be identified within the range of $194-$152, corresponding to the 23.6%-61.8% Fibonacci Retracement levels. If this rally was driven by genuine interest and not manipulated prices, BCH bulls would vigorously defend the 61.8% level at $152.6. This would be accompanied by an increase in trading volume, indicating an ideal scenario for another rally targeting the price range of $306-$435.

However, if the bears succeed in bringing BCH below the 61.8% level and BCH fails to hold the Creek zone at $131-$121, it would invalidate the previous rally and potentially lead to a structural breakdown.