Technical Analysis for BCHUSD for 2nd December 2021
Bitcoin Cash Bear Breakout, BCH Upsides Limited at $640
Past Performance of BCH
Bitcoin Cash is the most liquid and valuable BTC fork, finding utility due to its low fees.
From the daily chart, BCH bulls are struggling against determined bears.
As it is, BCHUSDT prices are within a bear breakout pattern and moving horizontally as per price action in lower time frames.
Boxed below $640 but above $540, BCH prices could trickle lower if sellers flow back.
What to Expect of BCH
A BTC lift-off could see the coin's valuation tear higher.
However, for now, the uptrend is limited as long as $640 holds.
A break above this liquidation line could see the BCH rip higher, reflecting gains of early October.
On the reverse side, confirmation of the recent break below the minor support trend line below $540 opens up BCH to a retest of $470—September 2021 lows.
Bitcoin Cash Technical Analysis
Technically, BCHUSDT is within a bear breakout pattern due to sharp losses of November 17 and $18.
Nonetheless, there could be a relief rally above the consolidation towards November highs of around $730 if bulls flow back.
On the reverse side, a high-volume break below $540 by a conspicuous sell bar may see BCH dump to $470. Notably, this sell target also flashes with the 78.6 percent Fibonacci retracement of the Q3 2021 trade range.
Resistance level to watch: $640
Support level to watch: $540
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