Chiliz (CHZ) has broken out from both short- and long-term resistance levels, with the wave count indicating a bottom being hit.
Since reaching an all-time high price of £0.78 in March last year, CHZ has been descending below a falling wedge. The decline produced a low of £0.066 in May 2022.
The falling wedge is seen as a bullish pattern since price frequently breaks out from it. The altcoin did break out on August 1 and has since climbed as high as £0.186 on August 17.
In addition, the weekly RSI has crossed over 50 and broken out from its declining resistance line. This confirms the validity of the breakout and is regarded as a sign of a bullish trend.
The closest point of resistance, if the rising trend continues, would be at £0.34. This is the level of resistance for the 0.382 Fib retracement.
Since CHZ’s price has broken out from a long-term descending resistance line that had been in place since October 2021, the readings from the weekly chart are supported by the daily chart.
The daily RSI has climbed above 50, similar to the weekly timeframe, confirming the presence of the breakout.
The nearest resistance level in the daily timeframe is at £0.21.
According to a chart of CHZ being circulated, the price has started a long-term wave five that will eventually lead to a new record high.
A long-term five-wave upward movement’s wave four seems to just have been completed based on the long-term count, which started in March 2020.
This specific wave count would be invalidated by a decline below the wave four low at £0.066.
The short-term count indicates that a short-term five-wave upward movement, with waves 1:5 having a 1:1 ratio, has been completed by the price. It is among the possibilities that the entire upward movement has ceased because wave three was extended.
In that case, the altcoin has now started an A-B-C structure that is corrective. The correction is likely to find support and come to a conclusion at the 0.5-0.618 Fib retracement support levels between £0.11 and £0.12.