Bitcoin Cash (BCHUSD) continue moving sideways inside a contracting triangle pattern that the cryptocurrency pair began on April 08th.
The big picture under the Elliott wave perspective reveals that the BCHUSD advances in an incomplete wave B of Minor degree identified in green.
Bitcoin Cash, in its 4-hour chart, illustrates the corrective structure corresponding to wave B of Minor degree labeled in green, which began on March 13th when the cryptocurrency pair found fresh buyers at level 133.67.
Once the price found buyers, the new long-side market participants lifted BCHUSD in five internal segments of Minuette degree identified in blue, reaching its top at 281.23 on April 08th. With this first upward leg completion, Bitcoin Cash completed the wave ((a)) of Minute degree labeled in black. After the wave ((a)) completion at 281.23, Bitcoin Cash started its sideways advance developing a contracting triangle that remains in progress.
BCHUSD shows the advance in a contracting triangle, where the action progress in its internal segment corresponding to wave (e), labeled in blue. This leg looks incomplete; however, the development of a triangle in the wave (e) leads us to conclude that the advance in wave ((b)) could end soon.
This condition suggests two scenarios, which are as follows. A first scenario implies that Bitcoin Cash could develop a new downward movement, which is likely to be the baseline of the contracting triangle, converging with the internal intraday channel colored in black. From this zone, BCHUSD could start a new rally corresponding to wave ((c)).
A second scenario considers the possibility that wave (e) fails in its new decline, and the price action could raise over the intraday channel in black running bullish in wave ((c)).
According to the Elliott wave theory, the structural series that Bitcoin Cash develops should correspond to a zigzag pattern. This formation follows a subdivision as 5-3-5. Therefore, once ended the wave (e) of the current contracting triangle in progress, the cryptocurrency pair should start a new upward leg corresponding to wave ((c)) of Minute degree in black. The next path could find resistance in the area between $332.30 and 352.96, bounded in the blue box.
In conclusion, our preferred short-term positioning remains in the bullish side until the completion of wave ((c)) of B in green, from where Bitcoin Cash could start to develop a new downward leg.