This time sellers again managed to organize a deep correction almost before the beginning of the previous wave of growth. Weak updating of the local high and deep corrections are signs of a weak trend. Looking at the trading volumes of the new wave of growth, which buyers began from the end of February, the strength of buyers in this range disappears. So the price was able to retest the range, from which we observed the collapse of the BCH market on February 22-23. However, this time it has not been possible to update the local low yet.
Therefore, at the moment there is a high probability that the price movement will continue in the global consolidation until mid-summer. The positive scenario of this consolidation will allow buyers to continue the upward trend with a new impulse with the first target of $925.
An alternative scenario - breaking the triangle down. The critical point in this scenario will be the mark of $500. Having lost the given mark, buyers will have to retreat to $370-400. The mark of $500 is also interesting because it was from it that the catastrophic market collapse began in February 2020, which ended in March.
Therefore, we will be monitoring this scenario over the next few days. In case the BCH price breaks out and fixes above the range of $725-750 , we will update the idea.
We create both short-term ideas (for a local understanding of the market situation) and medium-term forecasts of price movements.
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