The price of Bitcoin is getting closer to the long-awaited $100,000 mark. The crypto community is full of anticipation as the price approaches this psychological level. Various tokens within the ecosystem are also experiencing major price rallies. This has also affected the price of BCH.
XForceGlobal, in a post about Bitcoin Cash (BCH), mentioned that the token looks positioned for a potential “violent breakout.”
They mentioned the historical significance of BCH and Litecoin (LTC) as “Dino Coins,” both of which have been in a prolonged accumulation phase exceeding 2,500 days, characterized by a series of higher lows.
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This long-term trend shows that both cryptocurrencies are forming a symmetrical triangle, setting the stage for a significant price movement in the near future.
The chart analysis indicates that BCH has been consolidating for over 2,530 days, aligning with XForceGlobal’s observations of these altcoins. The presence of a large descending triangle or wedge formation in the price action hints at an impending breakout.
Two Possible Breakout Scenarios
Utilizing Elliott Wave theory, the current structure suggests BCH may be completing a corrective phase, with an imminent impulsive breakout on the horizon.
The breakout potential is significant; if BCH surpasses the descending trendline, it could see price levels soar toward $1,000 to $3,000.
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Two breakout scenarios are proposed: an aggressive breakout that drives BCH rapidly toward the $2,000 to $3,000 range, or an extended accumulation phase where BCH remains within the triangle until stronger market momentum is achieved.
Support levels around $220 to $330 have consistently held during this accumulation phase, indicating a solid foundation for a bullish trend, particularly if macroeconomic conditions remain favorable.
Resistance levels, particularly the critical point near $860, will be crucial; a successful breach could pave the way for BCH to reach between $1,600 and $3,000, as anticipated by the larger Elliott Wave cycle.
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