Bitcoin Cash (BCH) Elliott Wave Analysis: Impulsive Recovery in Play Amid Key Support Bounce

Bitcoin Cash (BCH) has recently shown significant price movements, with notable fluctuations observed in both the daily and 1-hour charts. The combination of Elliott Wave Theory, Fibonacci retracement levels, and RSI indicators provide critical insights into BCH’s current market dynamics and potential future pathways.

BCH Price Analysis

On the daily chart, BCH completed a complex corrective pattern marked by a double zigzag (W-X-Y), culminating in wave Y around the $335 region. The price declined sharply from its prior Wave (C) high that peaked at $640 on Dec. 6, breaking below key horizontal support zones near $397, which aligns with the 0.5 Fibonacci retracement level of the preceding uptrend. This breach signifies bearish dominance, yet the daily Relative Strength Index (RSI) indicates oversold conditions, hinting at potential exhaustion of the downtrend.

The wave structure shows that BCH previously completed a five-wave impulse to the upside, followed by the current corrective phase. Notably, the correction ended on Feb. 3, at $272, below the key support level of 0.618 Fibonacci retracement at $322. The RSI on the daily timeframe suggests a bullish divergence as the price formed lower lows, but the RSI maintained higher lows, indicating weakening bearish momentum.

Additionally, volume analysis shows decreasing selling pressure, which often precedes a reversal. The daily candlestick patterns, particularly the presence of long lower wicks, support the idea of buyers stepping in around current levels. If BCH holds above $322, it could confirm a local bottom and initiate a recovery phase.

Given this setup, BCH may be preparing for a reversal or at least a corrective bounce back toward the broken support around $397. However, sustained bullish momentum requires reclaiming this critical level, with the next major resistance near $472 (0.382 Fibonacci retracement). Failure to break above this zone could see BCH range-bound or facing renewed downward pressure.

BCH Price Prediction

The 1-hour chart reveals a developing impulsive wave structure, suggesting a short-term bullish recovery. BCH appears to be in the early stages of an impulsive five-wave sequence following the completion of wave (ii) correction. Wave (iii) is anticipated to push prices toward the $380-$400 range, aligning with the 0.5 Fibonacci retracement level.

Subwave analysis within wave (iii) indicates strong bullish momentum, with minor corrective pullbacks expected around $360-$370 before further upward movement. The RSI on the hourly chart supports this bullish outlook, having rebounded from oversold conditions and showing an upward trajectory. A break above $380 would confirm the extension of wave (iii), while failure to do so might indicate a prolonged consolidation phase.

Following the completion of wave (v), a corrective ABC pattern may unfold, potentially retesting support near $330 before the next impulsive phase. If BCH maintains higher lows during this correction, it could signal the establishment of a bullish trend reversal. The projected wave (v) could reach as high as $420, depending on market momentum and volume confirmation.

A decisive close above $400 would bolster the bullish scenario, while a drop below $322 would invalidate this outlook, suggesting further downside risk.

Key Levels to Watch

• Immediate Resistance: $397 (0.5 Fibonacci retracement)
• Key Support: $322 (0.618 Fibonacci retracement)
• Critical Support: $215 (0.786 Fibonacci retracement)
• Short-Term Target for Wave (iii): $380-$400
• Invalidation Zone: Below $322, indicating potential for further downside