Technical Analysis

Bitcoin Cash Is Bouncing After A Thrust Out Of A TriangleMay 9, 2023

Bitcoin Cash is bouncing after a thrust out of a triangle, which indicates for the final leg from Elliott wave perspective.

Bitcoin Cash with ticker BCHUSD is trading south for the last couple of months, but we want to focus on the intraday hourly chart in which we have spotted nice and clean pattern by Elliott wave theory.

At the end of April and beginning of May we were tracking a bearish running triangle formation within wave (iv) that was indicating for the final wave (v) before bounce and recovery. Triangle consists of five waves a-b-c-d-e and it’s a continuation pattern that usually occurs in 4th waves of an impulse and in B-waves of correction.

Bitcoin Cash Is Bouncing After A Thrust Out Of A Triangle 1h chart
BCHUSD 1H Chart From May 05

As you can see, after completing of a triangle within wave (iv), BCHUSD dropped yesterday on May 08 into final wave (v) towards projected target, from where we expected a rebound once a five-wave cycle of the lower degree fully unfolds.

Bitcoin Cash Is Bouncing After A Thrust Out Of A Triangle 1h chart
BCHUSD 1H Chart From May 08

And, today on May 09 we can see nice and sharp bounce, which suggests now at least a temporary support in place. Currently it seems to be unfolding a five-wave bullish impulse into first leg (a)/(i), so more gains can be seen for wave (c) or (iii) in upcoming days/weeks, just watch out for an intraday pullback in (b)/(ii).

Bitcoin Cash Is Bouncing After A Thrust Out Of A Triangle 1h chart
BCHUSD 1H Chart From May 09

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