After posting negative returns in January and February, Bitcoin Cash (BCH) is on track for a strong March finish, gaining 15% this month. Despite the recent rally, BCH’s quarterly performance is still set to close with a double-digit decline.
At the beginning of the month, Bitcoin Cash’s price traded around $310. Today, the altcoin’s value is $336, even though it briefly tapped $400 during the first week.
With no major resistance ahead, this analysis explains why BCH could trade even higher before the end of this year’s first quarter (Q1).
BCH Trend Changes
Between March 1 and 5, Bitcoin Cash’s price climbed from $310 to $405. Later, the daily chart shows that the cryptocurrency experienced a decline to $322.
This decline led to the formation of a descending triangle, which erased almost all of BCH’s gains. However, the coin later saw an increase in demand.
This helped it break out of the upper trendline of the triangle pattern. As a result, the monthly chart has shown a green candlestick. Indicating that BCH might get its first positive return in 2025.
In addition, the Awesome Oscillator (AO) reading on the daily chart is negative. However, the green histogram bars suggest that Bitcoin Cash’s price might not experience a severe correction as March nears its last few days.
If this trend remains the same, BCH might remain in the same region or trade higher.
Support Strengthens
Beyond the daily chart analysis, on-chain data from IntoTheBlock reveals that BCH might display strength in the short term.
For instance, the In/Out of Money Around Price (IOMAP) reveals strong support for the altcoin between $316 and $355.
In the $316 to $ 325 range, over 274,000 addresses hold more than 966,000 BCH in profit, while nearly 300,000 addresses hold 752,460 BCH between $325 and $335. This support outweighs the volume of unrealized losses between $339 and $388.
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With this in place, Bitcoin Cash’s price will likely approach the $400 mark before March ends.
BCH Price Analysis: $400 Target Possible
Looking back at the technical side, CCN observed that Bitcoin Cash’s price has been hitting higher lows within a symmetrical triangle. The symmetrical triangle appears when two trendlines of equal slopes converge.
Depending on the market sentiment, it can be bullish or bearish. BCH looks ready to break above the upper trendline.
If this happens, the cryptocurrency might break past the resistance around $349. Should that be the case, the next target for Bitcoin Cash could be a run toward the 0.618 Fibonacci level at $411.
On the flip side, a breakdown below the lower trendline of the symmetrical triangle might invalidate this thesis.
In that scenario, BCH might fall below the $300 mark.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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