BCH Price Analysis: Descending Channel Promises Potential Bottom Ahead of Last Decline

Bitcoin Cash (BCH) has extended its multi-month corrective decline within a broad descending channel, progressing toward the final leg.

Bitcoin Cash (BCH) has been extending its multi-month corrective decline in a broad descending channel, setting the stage for the final leg of this corrective Y-pattern.

As the last decline unfolds, a confluence of Fibonacci levels and price structures could set the stage for a potential bottom formation.

BCH/USD Chart Analysis: Descending Channel and Fibonacci Levels

Examining the 4-hour chart, BCH is clearly progressing within a descending corrective channel, forming a larger WXY pattern from the April 2024 high near $716.

This structure has seen significant development, and as the price action approaches the apex of wave (e) of Y, there are strong implications that the broader correction could be winding down.

Specifically, subwave (d) encountered resistance at the 0.5 Fibonacci retracement level of $397.53, coinciding with the upper boundary of the channel. As anticipated, this led to a rejection and the downswing of wave e.

Moreover, Fibonacci retracement from the broader advance reveals crucial support at $263.91 and $215.30 (0.786 Fib), aligning with the projected completion zone for wave Y.

Completing the technical picture, the Relative Strength Index (RSI) has also dipped back into the oversold region at around 25%, indicating a potential shift in momentum.

Furthermore, the descending wedge pattern, defined by converging trendlines, adds another layer to the analysis. If the price manages to stay above the lower boundary of this wedge, it bodes well for a reversal.

This wedge's lower boundary also closely follows the 0.786 Fibonacci retracement level from the March 2024 low to the April 2024 high, converging around $215.30.

If this support breaks decisively, it could set the stage for a continuation toward the 1.0 Fibonacci extension at $181.33.

However, a strong reaction from this zone would be crucial, considering that BCH has historically shown resilience at fib levels and fib confluence zones. Since February 2024, the cryptocurrency has never closed lower than $274.

This support zone, if respected, could mark the final leg of the corrective cycle and pave the way for a new impulse wave upward.

Examining the 1-hour chart in detail, BCH is progressing through lower-degree wave (c) of a higher-degree (e), which could be the final move before setting the bottom.

The measured structure indicates potential downside targets between $263.91 and $242.67, corresponding to the 0.786 and 1.0 Fibonacci extension levels of wave (a)-(b)-(c).

However, should momentum carry through, a deeper spike toward $215.30 (1.272) or $181.33 (1.618) cannot be ruled out before exhaustion is confirmed.

At present, the RSI is flattening as it approaches oversold conditions, with early divergence forming between price and momentum. This suggests a gradual weakening of bearish strength despite lower prices, a common occurrence in terminal corrective patterns.

As the descending wedge's lower boundary is crossed, it closely follows the 1.272 Fib, setting $215.30 as a critical monitoring level.

If BCH finds support and rebounds from the $242–$215 zone, the next upside reaction could test $292.30, followed by $322.34 (0.618 level), which acts as structural resistance.

A confirmed breakout above $322.34 would solidify the end of the correction and potentially initiate a new bullish sequence.

Conversely, failure to maintain support at $215.30 increases the risk of continuing the decline toward the deeper 1.618 target at $181.33.Key Levels to Watch