- Bitcoin Cash bulls are looking forward to an impressive price action above a symmetrical triangle pattern.
- BCH/USD must break out of the ongoing consolidation to sustain the uptrend illustrated by the IOMAP model.
Bitcoin Cash has recovered considerably from the downswing experienced after the $339 peak achieved in August. At the time of writing, BCH looks towards a potential breakout to $320 or a breakdown that would erase the gains made to $193.
Bitcoin Cash bullish outlook gaining traction
BCH is trading at $259 while holding at the apex of a symmetrical triangle pattern. This pattern is typical in technical analysis and is created by drawing a line to connect a series of lower highs and another trendline connecting higher lows. It represents a period of consolidation ahead of a breakout or a breakdown.
In this case, a breakout would elevate Bitcoin Cash to a price target of $320. An ongoing bullish momentum suggests that a break above the upper trendline is the most probable. Besides, the Relative Strength Index reinforces the bullish outlook after crossing above the midline.
 (47)-637414398083600734.png)
BCH/USD daily chart
The same daily chart shows Bitcoin Cash trading above all the three Simple Moving Averages; the 50 SMA, 100 SMA, and 200 SMA. The price action above these crucial levels doubles down on the growing bullish grip.
On the other hand, closing the day above $260 might call for more buy orders in readiness for a run-up to $320. Note that delay in recovery may occur at various supply zones, including $270, $280, and $300.
 (48)-637414398479563796.png)
BCH/USD daily chart
IntoTheBlock’s IOMAP model brings to light the ongoing consolidation, especially with the price trading between a massive resistance area and support zone. On the upside, roughly 153,000 addresses are holding approximately 894,000 BCH between $260 and $266.
The supply in this zone could absorb some of the buying pressure. However, if it is flipped into support, a spike might occur towards $300.
On the downside, the immense support holds the ground from $243 to $250. Here, around 111,000 addresses previously purchased, roughly 1.3 million BCH. It is doubtful that the token will slice through this support in the coming sessions to invalidate the uptrend.
-637414399335738526.png)
Bitcoin Cash IOMAP chart
It is worth mentioning that if Bitcoin Cash closed the day under $260, the breakout to $320 would be jeopardized. Trading below the symmetrical triangle pattern might trigger massive sell orders with enough volume to push BCH under $200.
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