After Its Drop to $265 on April 9, Bitcoin Cash (BCH) Price Seems to Be Moving from One Bullish Pattern to Another

After its drop to $265 on April 9, Bitcoin Cash (BCH) price seems to be moving from one bullish pattern to another. This development

Bitcoin Cash (BCH) price seems to be moving from one bullish pattern to another after its drop to $265 on April 9. This development has ensured that the cryptocurrency has evaded another correction, with eyes set on higher values.

As of this writing, the BCH price is trading above $345. The coin, which split off from Bitcoin (BTC) during the 2017 hard fork, could be adding another $100. Here is why.

BCH Upward Pressure Builds

Between March 6 and April 10, Bitcoin Cash’s price fell from $410 to $265. This price drop led the altcoin to form a falling wedge on the daily chart. A falling wedge is a bullish pattern that signals a potential breakout to the upside after a correction.

As shown above, BCH has risen above the wedge’s upper trendline. This indicates sellers have lost momentum, and buying pressure is slowly building.

Following the breakout, Bitcoin Cash’s price formed an ascending channel as it hit lower highs and lower lows.

While it faced resistance near $362, the Moving Average Convergence Divergence (MACD) held its ground in the positive region. The MACD’s positive reading indicates bullish momentum with the Exponential Moving Averages (EMAs), reinforcing the thesis.

In the chart above, the 12-period EMA (blue) has crossed above the 26 EMA (orange), validating the bullish bias.

BCH bulls are likely to defend the support at $320.68 if this remains the case. This could also help breach the overhead resistance around $395.45.

BCH Price Analysis: Higher Highs in Place

Image: Bitcoin Cash on Bitsamp

In line with this outlook, the Awesome Oscillator (AO) reading has recovered from the negative zone while flashing green histogram bars.

Like the MACD, the AO measures momentum. Therefore, the positive reading of the AO indicates rising bullish momentum around BCH.

Apart from the AO, CCN observed that Bitcoin Cash’s price has climbed above the 20 EMA (blue), which typically acts as key support.

Breaking above it indicates that BCH is in a bullish trend. Should this trend continue, Bitcoin Cash’s price might breach the resistance around $389.99.

If validated, BCH’s next move could be a run to $445 at the 0.50 Fibonacci level. If buying pressure increases at this level, the coin’s value could rally to $500.

Alternatively, this forecast might be invalidated if bears tug BCH price below the 20 EMA.

If that were to happen, bulls might struggle to defend the underlying support, and Bitcoin Cash’s price could slide below $250.