Bitcoin Cash enters an ascending channel following a wedge breakout, with bullish momentum signalling a potential climb to $445.

Bitcoin Cash (BCH) is showing signs of a strong recovery after dipping to $265 on April 9. The altcoin, which forked from Bitcoin (BTC) in 2017, has since moved from one bullish pattern to another — a shift that could see it surge to $445 in the near term. At the time of writing, BCH is trading above $345, having gained momentum following a breakout from a falling wedge pattern.

Wedge Breakout Sparks Uptrend

Between March 6 and April 10, BCH slid from $410 to $265, forming a falling wedge — a bullish reversal pattern. After breaking above the wedge’s upper trendline, the cryptocurrency entered an ascending channel, signalling sustained buying interest. This shift suggests that sellers are losing control, while bulls are beginning to dominate the market.

Momentum Indicators Turn Bullish

Technical indicators back the bullish sentiment. The Moving Average Convergence Divergence (MACD) has remained in the positive zone, with the 12-period EMA crossing above the 26-period EMA — a classic bullish crossover. This development aligns with the upward price action, reinforcing the possibility of a continued climb.

Similarly, the Awesome Oscillator (AO) has flipped positive, flashing green histogram bars, which point to increasing momentum on the buyers’ side.

Key Resistance and Support Levels

BCH faces immediate resistance around $362 and $395.45. However, if the bullish pressure continues, the price could break above these levels and head toward the $445 mark — aligning with the 0.50 Fibonacci retracement level. A further push could even see BCH test the psychological $500 barrier.

On the downside, the 20-day EMA around $320.68 serves as a crucial support. If bears manage to pull BCH below this level, the bullish outlook may weaken, potentially dragging the price down toward $250.

Outlook: Bullish With Caution

With the ascending channel formation, bullish indicators, and key moving averages acting as support, Bitcoin Cash appears poised for further gains. A successful breach of resistance could set the stage for a rally to $445 or beyond. However, traders should watch the $320 support closely, as a drop below it could invalidate the current bullish setup.