Bitcoin Cash is trading around 247.2 on the daily timeframe after a steep slide from the November 3 high near 291, with the November 7 wick tagging the ascending trendline near 244 at the lower boundary of a symmetrical triangle.
The triangle began with the August 8 low near 200.5, where the rising trendline originates. BCH broke out with a vertical leg in late August, built a range between roughly 240 and 290 through early September, and tagged the trendline again with the September 16 low near 214. A second vertical leg followed, carrying price to the high near 366 on September 23. Since then BCH has printed a series of lower highs near 322, 305, and 291, with the October 28 wick tagging the descending trendline and getting rejected. The 256 level held as support through mid October before breaking in the latest selloff.
Price is currently pressing the lower trendline at 247.2 after losing that 256 support, and with both boundaries converging toward the apex, a decisive move is approaching.
Key Levels To Watch:
→ 366 September 23 high, triangle origin
→ 322 October 1 lower high, major resistance
→ 305 October 28 lower high, upper trendline rejection
→ 291 November 3 lower high, first major target on a bounce
→ 282 Descending trendline, current level
→ 256 Lost support, first level to reclaim
→ 247.2 Current price, testing the lower trendline
→ 244 November 7 wick low, trendline support
→ 214 September 16 low, deeper support
→ 200.5 Trendline origin, August 8 low
A hold of the trendline and a reclaim of 256 would confirm the bounce and set up a rotation toward the descending trendline near 282, with a break above it resolving the triangle to the upside and putting 305 and 322 back in view.
Losing the trendline and the 244 wick low would be a breakdown from the triangle, exposing 214 as the next support with the 200.5 origin as the deeper level if the selloff extends.
Hold the trendline and BCH rotates back toward the upper boundary. Lose 244 and the triangle breaks down toward lower support.
Bias stays neutral given the series of lower highs, with the trendline holding for now, but 256 needs to be reclaimed to confirm the bounce and a decisive break of either boundary will define the next move.
