As per the technical analysis data model from CoinDesk Research, surged past $550 during a high-volume rally, then stabilized in a narrow range as traders assessed if the new support level would hold.
Technical Analysis Insights
- Movement and outcome: BCH increased from $540.24 to $554.52, achieving a 2.6% gain for the session, indicating higher lows and confirming an upward trend.
- Timing of breakout: The surge commenced during Asian trading hours as the price surpassed $547 at 1 a.m. UTC, with the breakout candle recording 130,078 units.
- Volume analysis: The trading volume exceeded average levels by 328% during the rise above $550, indicating robust involvement in the breakout.
- Post-rally assessment: A retreat to $553.58 in the latest hour tested the level just above the breakout area.
- Weekly perspective (vs BTC): The analysis shows a 4.8% rise for BCH compared to a 1.2% drop for Bitcoin in the same period.
Interpreting the Patterns
- Confirmed breakout: The breakout above $547 and subsequently $550, coupled with significant activity, indicates strong buyer support.
- New support evaluation: A brief drop to $553.58 following the breakout serves as a regular test to verify if new buyers uphold this price; $553.50 is the critical level being monitored.
- Constructive framework: The model identifies higher lows at $528.55 and $534.36, along with an ascending trendline from October 30, remaining intact, despite a lower high at $558.25 being observed.
Support and Resistance Overview
- Nearest support: $553.50 (recently validated).
- Breakout retest support: $547 (previous resistance now acting as support).
- Trend reference: The ascending line from October 30 is positioned above $534; prior higher lows at $534.36 and $528.55.
- Immediate resistance: $558.25 (previous high).
- Short-term range: $553 to $556 characterizes the ongoing consolidation zone.
Volume Dynamics
- Peak volume: 130,078 units at 1 a.m. UTC upon breaching $547.
- Breakout participation: Volume increased by 328% compared to average during the ascent past $550.
- Following the rise: The model indicates persistent activity even during the minor pullback, aligning with ongoing price discovery efforts.
Positioning Indicators
- Options market interest: The model notes rising call options interest at the $560 and $575 November strike prices, reflecting traders’ speculative positioning (for context, not forecasting).
Risk Management Framework
- If support holds: The previous high of $558.25 will be the immediate point of evaluation (approximately 0.9% from the session settlement referenced in the model).
- If support fails: A breakdown below $553.50 may prompt a retest of $547 (the breakout point now viewed as support).
- Reference for stop-zone: The model identifies a level below $534.36 as a reasonable risk management line within the upward trend.
CoinDesk 5 Index (CD5) Overview
- CD5 observation: From October 30, 3 p.m. UTC, to October 31, 2 p.m. UTC — CD5 experienced a 1.43% rise to $1,920.74, exceeding $1,920 between 4–5 a.m. UTC, with a daily range of 4.34%, indicating active price discovery among major cryptocurrencies.
Disclaimer: Some sections of this article were crafted using AI tools and subsequently reviewed by our editorial team to verify accuracy and adherence to our standards. For further details, refer to CoinDesk’s complete AI Policy.
