Today, Bitcoin Cash (BCHUSD) is up by near 10% at the time of writing and was leading the way for cryptos. The Chinese government’s support of Blockchain technology keeps supporting cryptocurrencies, and most of them are trying to end their downtrend from June.
Bitcoin Cash (BCHUSD) is no different, and at the time of writing, the price was trading at $290.9 after failing to take out the neckline of a significant head and shoulder pattern that triggered on September 24. As the price is trading at resistance and up by 47.8% from their October lows, we might see prices consolidate at current level. The price might even trade slightly lower on profit-taking.
Looking beyond the near term price action, the change in tone of the Chinese government is a game-changer and might add to the bullish bias in the months ahead. However, as the downtrend from June remains in play there is still a risk that Bitcoin cash declines to its October low at $196.4, as long as the price trades below the September 18 high at $334.2. Yet, if the prices manage to take out the $334.2 level then it might open the door for a retest of the June high at $518.